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NEW DELHI : Food products company iD Fresh Food on Tuesday announced the closure of its 507 crore Series D funding round led by NewQuest Capital Partners. Existing investor Premji Invest also participated in the round.

As part of the round, early investor Helion Ventures has exited with a 10-fold return on its investment made in 2014, the packaged foods company said in a statement.

Kotak Mahindra Capital acted as the financial adviser to both iD Fresh and Helion.

The capital will help the firm, which sells packaged idli and dosa batter since 2005, foster product innovation, build capacity and expand its presence across key markets in India, the UAE and the US.

The company is also set to launch its products in Singapore and Malaysia.

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

iD has since expanded its product range, adding more innovative products such as vada batters, parotas, wheat chapatis, instant filter coffee liquid, bread curd and paneer.

Demand for convenience foods increased significantly during the pandemic, helping companies ramp up capacity.

Currently, iD sells its batters in 45 cites with a network of 30,000 retail stores in India, the UAE and the US.

The company has manufacturing units in Bengaluru, Mumbai, Hyderabad and the UAE. A manufacturing plant in the US is in the pipeline.

Last year, it had opened the world’s largest idli-dosa factory at Anekal, Karnataka, with an investment of 50 crore. Its fully automated kitchen produces over 100,000 kg batter and 300,000 parotas per day.

iD Fresh Food is on track to reach 500 crore revenue run-rate in FY22, it said.

Jaipal Singal, chief financial officer, iD Fresh, said it plans to launch an IPO in a few years.

“We are 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 Singal.

Musthafa, the CEO of iD Fresh Food, said that the company will expand its presence across channels and countries, strengthen the supply chain and introduce innovative products.

Amit Gupta, partner and head, India and Southeast Asia, NewQuest, said iD Fresh has a clear edge considering the “large opportunities" in the fresh food space.

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