In a major development within India's fast-moving consumer goods (FMCG) sector, London-headquartered private equity firm Apax Partners has made a substantial investment in a leading Indian food company. The firm has acquired a significant minority stake exceeding 35% in Bengaluru-based iD Fresh Food.
Deal Valuation and Shareholder Exits
The financial transaction is valued at more than Rs 1,500 crore, according to sources familiar with the matter. While neither iD Fresh Food nor Apax Partners has officially disclosed the precise financial contours, this investment represents one of the notable private equity deals in the Indian convenient foods segment recently.
As a key part of this deal, Apax Partners has purchased shares from some of the company's existing institutional investors. This move has provided Premji Invest and TPG NewQuest with partial exits from their holdings in iD Fresh Food. The entry of a global investor like Apax marks a significant phase in the startup's growth journey.
iD Fresh Food's Market Position
Founded in Bengaluru, iD Fresh Food has established itself as a dominant player in the convenient, ready-to-cook food space. The company is best known for its fresh idli and dosa batter, which have become household staples for many consumers across India and abroad.
Beyond batters, the company has successfully expanded its portfolio to include a range of other products. Its offerings now encompass Indian flatbreads like parottas and value-added dairy products, catering to the growing demand for quality, time-saving kitchen solutions. The convenient foods category, in which iD operates, has seen remarkable and sustained traction among urban and time-pressed consumers.
Strategic Implications and Future Growth
This substantial infusion of capital from a reputed global private equity firm is expected to fuel iD Fresh Food's next stage of expansion. The funds will likely be deployed towards enhancing manufacturing capabilities, strengthening supply chain networks, and accelerating product innovation.
The investment underscores the strong investor confidence in the resilience and growth potential of India's packaged fresh food market. It also highlights the successful scaling of a homegrown brand that has built trust through consistent quality. The partial exit for early backers like Premji Invest and TPG NewQuest validates the value creation within the company since their initial investments.
With Apax Partners' global expertise and financial backing, iD Fresh Food is poised to consolidate its market leadership and potentially explore new geographies and product categories, further transforming the way India approaches traditional home cooking.
