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In a significant development for India’s consumer packaged goods industry, London based private equity firm Apax Partners has completed a strategic investment in iD Fresh Food, acquiring a substantial minority stake exceeding 35 percent for approximately Rs 1,500 crore. This transaction values the Bengaluru based ready to cook foods manufacturer at nearly Rs 4,500 crore, marking one of the largest recent investments in India’s burgeoning packaged foods sector.
The Transaction Structure
The Apax Funds acquired their stake from existing shareholders Premji Invest and TPG NewQuest, both remaining as investors alongside co-founder PC Musthafa and the management team. The deal represents one of Apax Partners’ first pure-play consumer investments in India, demonstrating significant confidence in the country’s food processing sector.
iD Fresh Food’s Journey and Market Position
Founded in 2005 in Bengaluru, iD Fresh Food pioneered the scaling of preservative free, traditionally prepared Indian foods through a direct to retailer cold chain model. Established by PC Musthafa and his four cousins, the company identified a critical market gap where consumers desired fresh, homestyle food without extensive preparation time. The company now operates in over 50 cities across India and the Gulf region, employs approximately 2,400 people, and has diversified beyond idli and dosa batter to include whole wheat parathas, curd, paneer, instant filter coffee, and chutneys.
Financial Performance and Strategic Rationale
In FY25, iD Fresh Food reported revenue of Rs 681.38 crore, representing 22 percent growth while maintaining double digit EBITDA margins. The company leads the branded batter and Indian flatbreads categories with 50-60 percent market share. PC Musthafa stated the partnership will enable accelerated growth and capacity building as the company prepares for a proposed 2027 public listing.
Market Context
The ready to cook category emerged as India’s fastest growing packaged food segment in 2024, doubling in volume during 2023-2024 while adding 18 million households. Sales grew 58 percent in 2024, significantly outpacing overall packaged food market growth of 8 percent, reflecting fundamental shifts driven by urbanization and evolving lifestyle preferences.
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