PC Musthafa flunked the 6th grade when his father was making no more than INR 10 in daily wages.

Mustafa faced the odds and who knew this boy would eventually secure an MBA degree from IIM-Bengaluru and build iD Fresh Food – a D2C company worth INR 2000 Cr.

The Humblest Of Beginnings & The Eureka Moment!

In 2005, Musthafa was pursuing his MBA degree in Bengaluru. At this time, he observed there was a huge demand for idli and dosa batter, but the options available in stores were filled with preservatives, didn’t taste fresh, and lacked the authenticity of homemade batter.

This is when he joined hands with 4 of his cousins to tap into this unmet need!

The team pooled INR 50,000 and started mixing idli and dosa batter by hand in a 50-square-foot kitchen, then delivering to local households on a motorcycle.

It took them 9 months to get to selling 100 packets of batter, but they were on to something!

Given the quality of the batter, word spread like wildfire, and iD Fresh Food became a hit in Bengaluru! By 2007, they began delivering batter door-to-door, using cold-chain logistics.

And they haven’t looked back ever since!

The Numbers Game: From 50 Grand to INR 2,000 Cr

Today, iD Fresh Food distributes across 45 cities globally serving 2 Mn households every day.

The company reported INR 345 Cr in revenue in FY23, up from INR 275 Cr in FY22, and projects to hit INR 500 crore by FY24.

Here are some more numbers that show just how far iD Fresh Food has come:

🔷 15 manufacturing plants spread across India and the Middle East

🔷 30,000 outlets where iD products are sold globally

🔷 50+ SKUs

In fact, their Vada Batter product alone sold 300,000 units in its first year of launch!

Backed By Innovation, Tech, and Bold Decisions: The iD Fresh Food Growth Pillars

iD Fresh Food didn’t become successful overnight! They have hit roadblocks, jumped over hurdles, and done everything between.

But, what’s interesting is that iD Fresh Food addressed all growth concerns with innovation, tech, and boldness!

The Spout Pouch That Won Consumers Over!

What sets iD Fresh Food apart is their patented spout pouch for idli and dosa batter. This clever packaging goes beyond convenience – it extends the shelf life to seven days (no preservatives used here) and makes pouring batter hassle-free.

This also reduced wastage and enhanced consumer trust—who wouldn’t appreciate batter that’s fresh and easy to handle?

Musthafa recalled in an interview, “We wanted to make our product as fresh as homemade. The spout pouch was the perfect solution to that problem.”

Consumer trust won! What would you do next? Precisely – expand your product line!

A Step Beyond Batter

iD Fresh Food’s idli and dosa batter were selling hot, and this is when they expanded into parotas, chapatis, and vada batter! Then, fresh filter coffee decoction. Another hit! Today, the company’s product portfolio includes over 50 SKUs, and 40% of their business now comes from products outside of batter.

Today, iD Fresh Food has 50+ SKUs, the most recent of which are 4 instant chutneys – all traditional flavours. Have you tried them yet?

Tech, Tech, Tech!

For a D2C company that’s into perishable items, maintaining freshness across vast geographies is a logistical nightmare. So, Musthafa turned to technology.

🔹 Geo-Tagging: Every retail store where iD Fresh Food sells its products is geo-tagged to ensure the salesperson never misses out on delivering at the store.

🔹 Geo-Fencing: Transactions with the salesperson are allowed only within 15 metres radius of the store. This ensures the salesperson actually reaches the retail outlet.

These tech-enabled practices helped iD Fresh Food control the wastage and improve overall margins!

Going Global At The Right Time!

It was 2015. After winning over the Indian market, Musthafa set his sights on the Middle East – UAE, Saudi Arabia, Qatar, and Oman. The Middle East now contributes around 25% of iD’s revenue!

But how? iD opened manufacturing units in the Middle East and invested heavily in cold chain logistics, ensuring that their products remain fresh even when shipped internationally.

But this came at a cost! Managing an end-to-end supply chain for fresh food became extremely expensive. To keep costs in check, ID invested in 500+ refrigerated trucks, automating much of their process, and focusing on tech-enabled logistics.

What’s Next For iD Fresh Food?

iD Fresh isn’t stopping anytime soon. Their goal? To hit INR 2,000 crore in revenue by 2025 and continue expanding into new geographies and product categories.

Will they succeed? What do you think?

See you in the next one!