Apax Partners picks up minority stake in iD Fresh Food

MUMBAI: London-based private equity (PE) firm Apax Partners has picked up an over 35% minority stake in iD Fresh Food in a deal pegged at more than Rs 1,500 crore, said people aware of the matter. As part of the transaction, Apax Partners has acquired some stakes from the company’s existing shareholders Premji Invest and TPG NewQuest, giving them partial exits. ID Fresh Food and Apax Partners did not disclose the financial specifics and contour of the deal.

PE investors are betting on the local food and beverages space amid a growing consumer market. Helped by higher disposable incomes and a wider exposure to global trends, Indians are experimenting with new formats, brands and seeking better choices. A young population and rising digital adoption have also changed the way people consume things. Last month, US-based L Catterton bought a minority stake in Haldiram Snacks Food while General Atlantic is set to take a bite of Balaji Wafers.

Bengaluru-based iD Fresh Food makes idli, dosa batter and a range of other items such as Indian flatbreads and value-added dairy products, operating in the convenient foods space, a category that has been finding traction among consumers. With Apax Partners on board, the company will step up growth in India and Gulf markets, besides foraying into new regions. “iD Fresh sits at the intersection of several powerful, long-term trends in India—rising incomes, rapid urbanisation, and consumers’ desire for convenient yet fresh, clean label food at home. The company has delivered strong, consistent growth while scaling profitability,” said Rohan Haldea, partner at Apax in a statement on Monday.