Ready-to-cook fresh foods brand iD Fresh Food, is doubling down on international expansion following a strategic investment from Funds advised by Apax Partners LLP, with plans to set up a manufacturing plant in Saudi Arabia later this year and enter the UK and US markets over the next 3-5 years.
In an interaction with Financial Express, Jaipal Singal, Vice Chairman and Global CFO at iD Fresh Food, outlined growth plans across the GCC, Europe and North America. The company is also scouting for acquisition opportunities in adjacent categories both domestically and internationally, he added.
What did Jaipal Singh say?
“Saudi, we started only 3 years back and today we are still only 25% of where we can be in the next 2-3 years. Currently we have only one GCC manufacturing facility in the UAE, which is nearly at full capacity. A new manufacturing facility in Saudi Arabia, later this year, will not only serve the growing local market but also cater to neighbouring countries like Bahrain and Qatar,” Singal said. The company expects UAE and Saudi to constitute 75% of the company’s GCC business, he added.
Beyond the Gulf, the UK and US will be the company’s focus markets for the next 3-5 years, according to Singal. The company has already begun small-scale operations through distributors in both markets to test the ground. However, the company has ruled out setting up owned manufacturing facilities in these markets for now, citing high costs and complexity, though this could change if acquisitions include existing facilities.
The Apax investment
The Apax investment, which Singal said is “almost entirely” a secondary deal involving partial exits for existing investors Premji Invest and TPG NewQuest, positions the company for both organic and inorganic growth. “We are actively looking for some inorganic opportunity in adjacent categories,” he said, noting that Apax’s global network would be particularly helpful for international acquisitions.
The company does not plan to raise primary capital in the near term, with the business having generated sufficient cash since its last primary funding round of $67.4 million in 2021. However, Singal indicated that if the company pursues a large acquisition, it may consider raising fresh capital.
The investment also comes as the company prepares for a potential public listing. When asked about an IPO timeline, Singal said: “If we can do within the next 24-36 months, we would be happy to.”
Founded in 2005 in Bengaluru, iD Fresh has scaled to over 50 cities across India and the Gulf, employing nearly 2,400 people. The company claims to command an estimated 50-60% market share in its core categories of branded batter and Indian flatbreads. In FY25 the company posted a revenue of Rs 688.2 crore and a profit after tax (PAT) of Rs 50.8 crore, according to Tracxn.
PC Musthafa, co-founder and CEO of iD Fresh, said the Apax investment marks “a defining moment” in the company’s journey, enabling it to “accelerate growth, build capacity, broaden our product range, and scale into more cities and markets.”
The transaction is subject to customary regulatory approvals and closing conditions