Apax Partners makes strategic bet, acquires minority stake in iD Fresh Food

Private equity firm invests more than ₹1,500 crore for over 35% of the ready-to-cook foods maker, backing its expansion across India and Gulf markets, according to sources

iD Fresh Food, an Indian maker of ready-to-cook foods, said it has received a strategic investment from funds advised by Apax Partners LLP, marking one of the largest recent private equity bets in the country’s packaged foods sector.

 

The Apax funds will acquire a significant minority stake from existing shareholders Premji Invest and TPG NewQuest, both of which will remain investors. The company’s co-founder, PC Musthafa, and his family will also retain their holdings. Financial terms were not disclosed.

 

People familiar with the matter said the transaction values the investment at more than Rs 1,500 crore, with Apax acquiring a stake of over 35 per cent. The transaction is subject to customary regulatory approvals and closing conditions.

 

 

“From a modest batter-making unit to a brand trusted by millions of households, our growth has been anchored in one simple belief: that consumers deserve fresh, honest food with no shortcuts,” said PC Musthafa, co-founder and chief executive officer of iD Fresh. “The Apax funds’ investment will allow us to accelerate growth, build capacity, broaden our product range, and scale into more cities and markets.”

 

Founded in 2005 in Bengaluru, iD Fresh scaled preservative-free, traditionally prepared Indian foods through a direct-to-retailer cold-chain model that delivers a five to seven day refrigerated shelf life. The company now operates in more than 50 cities across India and the Gulf, employs about 2,400 people, and is India’s largest ready-to-cook fresh foods brand. iD Fresh leads the branded batter and Indian flatbreads categories with an estimated 50–60 per cent market share, has delivered about 25 per cent growth with double-digit EBITDA margins, and offers products including idli or dosa batter, flatbreads, chutneys, sambar, and value-added dairy products.

 

“iD Fresh has delivered strong, consistent growth in large, under-penetrated markets,” said Harjot Dhaliwal, partner and head of India at Apax. “We will work closely with the management team and leverage our consumer packaged goods expertise to accelerate growth, including expanding distribution into new cities and channels.”

 

Rohan Haldea, partner at Apax, said iD Fresh sits at the intersection of several powerful, long-term trends in India—rising incomes, rapid urbanisation, and consumers’ desire for convenient yet fresh, clean-label food at home. “The company has pioneered an innovative cold-chain model, built a brand that is synonymous with quality in its categories, and delivered strong, consistent growth while scaling profitability.”

 

In the coming financial year, iD Fresh expects to build on its momentum through deeper penetration across domestic and international markets. This includes new product innovations, accelerated channel expansion, and increasing consumer preference for fresh, convenient, clean-label food solutions.