iD Fresh Food, India’s one of the fastest growing and innovative fresh food start-ups, announced the closing of its Rs 507 crore Series D round of funding. In one of the largest deals in the food start-up space, the round was led by NewQuest Capital Partners, Asia’s leading secondary private equity firm along with the existing investor, Premji Invest.

Testimony to iD’s incredible growth story is Helion Ventures’ exit with a multi-bagger 10X return. Kotak Mahindra Capital acted as the exclusive financial advisor to the company and Helion.

The strategic fund raise reflects the brand’s ambition to further strengthen its market leadership in the fresh foods business, foster product innovation, build capacities and expand its presence across key markets in India, the UAE, and the US. As part of its global expansion plans, the company plans to extend its presence to Singapore, Malaysia and other markets in the near future.

Founded by PC Musthafa, Abdul Naser and his brothers in 2005, iD had secured US$5.2 million in Series A funding from Helion Ventures in 2014 and US$25 million from Premji Invest in 2017.

The company has witnessed unprecedented growth across all its categories and channels – and is on track to achieve Rs 500 crore in revenue run-rate for the current fiscal year, despite the pandemic and related challenges in the last two years. Last year, the company launched the world’s largest idli-dosa factory at Anekal in Karnataka with capex investment of close to Rs 50 crore. Its fully automated Giant Kitchen produces over one lakh kg batter and three lakh parotas per day.

Musthafa, said “iD is a people’s brand, driven by high ethical standards. Values are vital to our growth. The fund raise is yet another milestone in our journey but the ride has just begun. In the coming years, we will expand our presence across channels and geographies, strengthen our supply chain practices and introduce innovative products that will redefine the packaged fresh food space not just in India, but across the globe.”

“While there is a large opportunity set in the fresh food space, iD has a clear edge as a market leader with its deep understanding of consumer preferences and ability to innovate real-time and define industry benchmarks. Its undisputable leadership position is a testament to the quality of the founding team and the innovative and people-oriented business they have created,” said Amit Gupta, partner and head of India and Southeast Asia, NewQuest Capital Partners.

“ Our solid growth fundamentals and market dominance in flagship categories make iD an undisputed leader. We’re well poised for an aggressive phase of growth with plans to launch an IPO in the next few years, creating a billion-dollar enterprise and solidifying our longstanding leadership position in the fresh food category,” said Jaipal Singal, chief financial officer, iD Fresh Food.

To unlock the billion-dollar opportunity in the direct-to-consumer (D2C) space, iD has been pivoting and transforming its distribution model and investing heavily in fostering its online presence. Its sales from ecommerce have grown by 300%.It has also partnered with BigBasket to launch a co-branded label, iD Fresho,” said Rahul Garg, partner, Premji Invest.

Talking about Helion’s exit, Rajiv Kataria said, “We identified the potential of iD early on. We were very impressed with the team at ID. We’re glad that we could create substantial value in our association with them