iD Fresh Food Turns Profitable In FY24, Posts INR 1.8 Cr PAT

iD Fresh Food turned profitable in the financial year 2023-24 (FY24). The ready-to-cook food maker reported a net profit of INR 1.84 Cr during the fiscal year under review as against a loss of INR 23.25 Cr in FY23. 

The turnaround came on the back of the startup reducing its cash burn. 

The Bengaluru-based startup clocked a 16% increase in its operating revenue to INR 395.76 Cr in FY24 from INR 340.9 Cr in the previous year. 

Founded in 2005 by PC Musthafa, Abdul Nazeer, Shamsudeen TK, Jafar, and Noushad TA, iD Fresh Food sells packaged ready-to-cook and frozen food products such as various varieties of idli and dosa batter, parotas, chapati, paneer, and curd. 

It sells its products on its own website, quick commerce platforms, and thousands of retail stores in India, the US, the UAE, and the UK. 

iD Fresh Food generated half of its revenue from sales of various batter products, which stood at INR 198.75 Cr in the fiscal ended March 2024. In contrast, these products contributed INR 163 Cr to its top line in FY23. 

Meanwhile, the startup earned INR 95.1 Cr from sales of parotas, INR 101.6 Cr from bread, and INR 68.6 Cr from dairy products, up 7.4%, 14% and 6.9% year-on-year (YoY), respectively. 

Decoding iD Fresh Food’s Expenses

The startup’s total expenses rose at a slower pace than the rise in its revenue. Total expenditure grew 8.4% to INR 398.75 Cr during the year under review from INR 367.94 Cr in FY23. 

Cost Of Materials Consumed: This was the biggest expense for the startup, rising 12.2% YoY to INR 139.3 Cr in FY24.

Purchase Of Stock-In Trade: The startup spent INR 76.26 Cr on purchase of stock-in trade during the fiscal under review, down 2.2% from INR 78.03 Cr in FY23.

Employee Benefit Expenses: iD Fresh Food incurred an expenditure of INR 77.1 Cr towards employee benefits in FY24, up 8.7% from INR 70.98 Cr in the year-ago period. Employee costs include salaries, gratuity, provident fund, among others.

Advertising Promotional Expenses: The startup spent INR 34.33 Cr towards promotional and marketing activities in the year ended March 2024, a hefty 31.2% increase from INR 26.15 Cr in FY23.

Transportation Cost: Expenditure under this bucket declined 21.6% to INR 13.06 Cr during the fiscal year under review from INR 16.66 Cr in FY23. 

iD Fresh Food competes against the likes of legacy players such as MTR, Tata, Gits, and Aashirvad (ITC) in the ready-to-cook food space. 

The startup last raised $68 Mn in its Series D funding round co-led by NewQuest Capital Partner and Premji Invest in January 2022. It has raised a total funding of over $119 Mn till date and counts the likes of Peak XV Partners and Helios Venture Partners, among others, as its investors.. 

Earlier this year, the Bengaluru-based startup roped in FMCG major Marico’s ex-senior executive Rajat Diwaker as its new India chief executive officer (CEO). 

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