Bengaluru-based packaged foods company iD Fresh Food makes around 4% of its annual revenue from online grocery delivery platform Bigbasket, according to the company's chief executive.
In 2018-19, iD Fresh registered a turnover of ₹210 crore, up 57% year-on-year from around ₹134 crore revenue reported in 2017-18. "E-grocery (channel) is a small business for us because most of our customers still end up buying our products from neighborhood stores. Bigbasket is now giving us close to ₹50 lakh revenue per month now, which is around 4% of my (annual) revenue. But we are also tapping into other platforms like Milkbasket, Grofers, and Amazon," said P.C Musthafa, chief executive and co-founder of iD Fresh during an interview.
Founded in 2005 by chief executive Musthafa and his four cousins, iD Fresh currently sells fresh 'idli-dosa' batter, ready-to-eat ‘parotas' and chapatis, 'vada' batter, filter coffee, curd and ‘paneer’. Musthafa told Mint that iD Fresh products are currently available in 35 cities in India across more 30,000 retail outlets.
Musthafa added that since iD Fresh is a basic essentials brand, it can be equated with fresh milk distribution market where the majority of the customers still buy milk from the nearest stores, rather than an online platform. “Hence this is why we think the share of online revenue for us is at 4%," he added.
Currently, iD Fresh sells its fresh foods products through five different channels including e-commerce platforms, modern trade stores, high-end supermarket, traditional kirana stores, as well as business-to-business channels.
The 15-year old company also has a larger presence in the Middle East market, which mainly targets NRIs, and according to Musthafa, iD Fresh is eyeing countries in the Middle East for increasing its revenue. iDfresh currently makes 25% of its annual revenue from Dubai, Sharjah, Abu Dhabi, and other cities in the UAE, according to Musthafa.
iDfresh also launched an “organic" range of 'idli-dosa' batters in March, eyeing consumers who are increasingly looking at health benefits and those willing to pay a premium for organically produced packaged goods. However, the majority of iD Fresh’s customer base are the still urban consumers who prefer convenience and hence made the swap to mass-produced fresh packaged goods.
Musthafa also told Mint that iDfresh is now looking beyond just the traditional idli-dosa batter, business in hopes to become one of the largest fresh food distribution chains in the country. Hence, the company incurs the highest expenditure on distribution costs.
“We deal with highly perishable fresh food, and so we replenish our stocks on a daily basis. When you are dealing with perishable goods your wastage will be high. Our revenue takes hit because of this, but we are doing this with a calculated risk currently, it is an investment for our future," said Musthafa.