iD Fresh banks on overseas markets, higher margins to become IPO-ready by Oct 2027

International markets currently account for nearly a third of iD Fresh’s business, with the Gulf Cooperation Council (GCC) region contributing the bulk of overseas revenue, Rajat Diwaker, chief executive officer for India operations, told Mint in an interview.

While Diwaker did not forecast how much the international business would contribute to overall revenue in the coming years, he said it is expected to grow faster than India because it is expanding from a smaller base.

“Being a relatively smaller business, we see a lot of opportunities to grow in international markets,” Diwaker said.

The company aims to go public around October 2027, but the timing will depend on market conditions, not just internal readiness, Diwaker said. iD Fresh seeks to achieve profitability levels comparable to those of India’s top-performing listed packaged-food companies before it goes public. This benchmark is set by Nestle India and Britannia Industries, which reported FY26 profit-after-tax margins of 14.52% and 13.4%, respectively.

“In terms of the profitability, we see ourselves being ready for public markets when we are able to achieve PAT where the best-in-class listed FMCG companies are,” Diwaker said.

Key Takeaways

• International business, led by Gulf markets, will grow faster than India operations.
• iD Fresh targets 2027 IPO, eyes profitability matching Nestle and Britannia margins.
• The company processes 95% of goods locally, finishing only 5% in destination markets.
• iD Fresh entered the snacks category, competing directly with Haldiram's and Sweet Karam.

The company has also raised prices by up to 20% on certain products to offset higher packaging costs, while keeping retail prices steady on items more sensitive to price changes.

Setting a model for expansion

The company operates a manufacturing facility in Ajman, UAE, and plans to expand its distribution across the UK, the US, Canada, Sri Lanka, and Singapore.

To support this expansion, iD Fresh has developed a manufacturing model under which about 95% of processing is carried out at its plants in India or Ajman, with only the final 5% completed in the destination market. The approach allows the company to scale overseas without setting up full-fledged manufacturing facilities in every country.

iD Fresh reported revenue of ₹688 crore in FY25 with a profit after tax of ₹50.8 crore, according to market intelligence platform Tracxn.

Founded in 2005 by P.C. Musthafa and his four cousins, the Bengaluru-based company has raised about $126 million from investors including Apax Partners, TPG Partners and Premji Invest. It was last valued at $491 million in February 2021, according to Tracxn.

Ready-to-cook boom

The ready-to-cook market is growing rapidly, with the chilled batters segment in the organized segment alone expected to reach a gross merchandise value of $400 million in 2025, according to Redseer Strategy Consultants.

Large consumer goods companies have also identified the opportunity. Orkla India Ltd, which operates the MTR and Minute Fresh brands, reported ₹209 crore in revenue from its convenience foods business in the March quarter of FY26. ITC sells RTC products through its Kitchens of India portfolio, while Tata Consumer Products markets ready-to-eat offerings under the Tata Sampann Yumside and Tata Q brands.

As one of the largest players in the RTC segment, Diwaker acknowledged that new entrants gradually chip away at market share.

“We are the market leaders. Every time there is a new competitor, they gain share from the market leader. We believe more competition helps grow the category," he said.

The company has been transforming its portfolio since FY24 and plans to double its size by the time it goes public, although Diwaker did not specify a timeline. He added that new product development and adjacent category expansion are expected to become meaningful revenue contributors. New products already account for a double-digit share of revenue.

iD Fresh has also entered the Indian snacks market, competing with players such as Haldiram's and Sweet Karam Coffee.

Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.

With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.

Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.

An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.

She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.

Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.

Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.

Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.