Bengaluru-based foodtech startup iD Fresh Food, which supplies idli-dosa batter across the country, is reportedly planning to raise about INR 400-450 Cr that will value the company at INR 1,800-2,000 Cr.
Founded by PC Musthafa (a story of “from rags to riches), Abdul Nazer, Shamsudeen TK, Jafar TK and Noushad TA in 2005, iD Fresh Food has, to date, raised $30 Mn — $25 Mn in a round led by Wipro chairman Azim Premji’s family office, PremjiInvest who acquired 25% stake in the startup in 2017, and $5 Mn investment from Helion Ventures, for another 25% stake in the startup in 2015.
According to an ET report, the deal is expected to be signed by early November, with existing investor Helion Ventures expected to sell 17% of its stake. Other minority investors of the startup include Sequoia Capital India and The Times of India and Economic Times’ parent company Bennett, Coleman and Co Ltd.
“We will not be in a position to comment on the speculations at the moment. All we can say is that we’re at an inflection point in our journey at iD and there has been a lot of interest from the investors in the food segment of late,” the company responded in an emailed query by Inc42.
iD Fresh Food is present across over 45 markets including Mumbai, Pune, Hyderabad, Vijayawada and even Dubai and Abu Dhabi, among others. It has two production plants in Bengaluru and one each in Chennai, Mumbai, Hyderabad, Mangalore and Dubai (Middle East). iD products are also supplied to distribution centres in Mysore and Pune, and the brand is also available with online grocers like BigBasket.
The startup recently came under social media controversy radar when a viral WhatsApp message alleged that iD Fresh Food uses cow bones and calf rennet to increase the volume of its batter.
Calling the claim baseless and fake propaganda, the iD Fresh Food said, “We would like to clearly specify that iD uses only vegetarian ingredients to make its products, iD Idly Dosa Batter is made from rice, urad dal, fenugreek and RO water only, which are 100% natural and vegetarian agri-commodities. There are no animal extracts used in any of our products.”
The startup has also filed a complaint with the WhatsApp Grievance Cell and Cybercrime, Bengaluru, against the misleading and false information being spread about the startup and its products.[Story updated with comment from iD Fresh Food]