iD Fresh Food became profitable in FY24, reporting a net profit of INR 1.84 crore compared to a loss of INR 23.25 crore in FY23.
According to INC42, the turnaround happened because the startup cut down its cash burn. The Bengaluru-based startup’s operating revenue increased by 16% to INR 395.76 crore in FY24, up from INR 340.9 crore in FY24.
iD Fresh Food generates half revenue from batter products
Established in 2005 by PC Musthafa, Abdul Nazeer, Shamsudeen TK, Jafar, and Noushad TA, iD Fresh Food offers ready-to-cook and frozen food products like idli and dosa batter, parotas, chapati, paneer, and curd. They sell through their website, quick commerce platforms, and thousands of retail stores in India, the US, the UAE, and the UK.
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However, iD Fresh Food made half of its revenue from selling batter products, which brought in INR 198.75 crore in the fiscal year ending March 2024, up from INR 163 crore in FY23. They also earned INR 95.1 crore from parotas, INR 101.6 crore from bread, and INR 68.6 crore from dairy products, with year-on-year increases of 7.4%, 14%, and 6.9%, respectively.
iD Fresh Food expenses grow slower than revenue
Meanwhile, the startup’s total expenses increased more slowly than its revenue. Total spending rose by 8.4% to INR 398.75 crore in FY24, up from INR 367.94 crore in FY23. The biggest expense was the cost of materials, which increased by 12.2% year-on-year to INR 139.3 crore in FY24. They spent INR 76.26 crore on purchasing stock-in-trade, down 2.2% from INR 78.03 crore in FY23.
In FY24, iD Fresh Food spent INR 77.1 crore on employee benefits, which is 8.7% more than INR 70.98 crore in the previous year. This includes salaries, gratuity, provident fund, and other costs. The startup spent INR 34.33 crore on promotional and marketing activities in FY24, a 31.2% increase from INR 26.15 crore in FY23. Transportation costs fell by 21.6% to INR 13.06 crore in FY24 from INR 16.66 crore in FY23.
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Furthermore, iD Fresh Food competes with established brands like MTR, Tata, Gits, and Aashirvad (ITC) in the ready-to-cook food market. The startup raised $68 million in its Series D funding round co-led by NewQuest Capital Partner and Premji Invest in January 2022. So far, it has raised over $119 million and has investors like Peak XV Partners and Helios Venture Partners.
Earlier this year, the Bengaluru-based startup hired Rajat Diwaker, a former senior executive at Marico, as its new India CEO.
