Ready-to-cook food maker iD Fresh Food’s net loss narrowed over 50% in the financial year 2022-23 (FY23). The Bengaluru-based startup, known for its idli and dosa batter, incurred a loss of INR 328.8 Cr in FY23, a 53% decline from INR 703.7 Cr in the previous year.
The decline in loss comes amid the ongoing funding winter, which has forced Indian startups to focus on profitability in the absence of fresh external capital.
iD Fresh Food last raised INR 507 Cr ($68 Mn) in its Series D funding round, led by NewQuest Capital Partner and Premji Invest, in January 2022.
Founded by P.C. Musthafa, Abdul Nazeer, Shamsudeen TK, Jafar, and Noushad TA in 2005, the startup sells packaged ready-to-cook and frozen food products across 30,000 retail stores in India, the US, the UAE, and the UK.
The brand’s product range includes various varieties of idli and dosa batter, parotas, chapati, paneer, and curd.
Revenue From Ops Jumps 1.2X
iD Fresh Food’s operating revenue increased over 26% to INR 479.2 Cr during the year under review from INR 381.6 Cr in FY22.
The startup earned 40% of its revenue from sales of batter.
It earned INR 191.5 Cr by selling various batter products in FY23, a 49% jump from INR 128.7 Cr in FY22
iD Fresh Food garnered INR 167 Cr from sales of parota, a 24% rise from INR 134.4 Cr in FY22
Revenue from dairy products stood at INR 64.1 Cr, a 5% decline from INR 67.6 Cr in FY22
Procurement Cost Fuels Rise In Expense
iD Fresh Food saw its total expenses jump 14% to INR 517.1 Cr during the year under review from INR 454 Cr in the previous fiscal year.
On a unit economics level, the startup spent nearly INR 1 to earn INR 1 from its operations.
Procurement Cost Biggest Expense: The startup spent INR 172.3 Cr on procurement of raw materials during the year under review, a 28% increase from INR 135 Cr in the previous fiscal year.
Advertisement Expenses See Steady Rise: iD Fresh Food spent INR 35.3 Cr on advertising in FY23, a 27% increase from INR 28 Cr in the previous financial year.
Employee Count, Expenses Rise: The startup’s employee headcount rose 10% during FY23, which resulted in a 20% increase in its employee benefit expenses. Employee expenses stood at INR INR 110.5 Cr in FY23 as against INR 92 Cr in FY22. As per LinkedIn, iD Fresh Food has an employee count of 508.
In July 2022, iD Fresh Food also granted ESOPs worth INR 46 Cr to 27 of its employees, including drivers and helpers, taking its total ESOP grant to INR 300 Cr.
Its EBITDA margin improved to -3% in FY23 from -13.3% in FY22.
iD Fresh Food competes against the likes of deep-pocketed giants such as MTR, Tata, Gits, and Aashirvad (ITC).
The startup is backed by marquee investors such as Premji Invest, Helios Venture Partners, NewQuest Capital, among others. It has raised around $99 Mn in total funding to date.
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