British private equity firm Apax Partners is set to acquire a 25 percent stake in Bengaluru-based iD Fresh Food for around Rs 1,300 crore, valuing the ready-to-cook foods company at close to Rs 4,500 crore, according to people familiar with the development.
The deal is expected to be among Apax Partners’ first pure-play consumer investments in India. Apax is said to have beaten a crowded field of investors, including Carlyle, Kedaara Capital, Permira, ChrysCapital, Multiples and Verlinvest, to secure the transaction.
Founded in 2005 by PC Musthafa of Kerala along with four of his cousins, iD Fresh Food has carved out a strong position in the packaged foods market by focusing on fresh, preservative-free, home-style breakfast products. Idli and dosa batters remain its core offerings. The company is currently backed by Premji Invest and TPG NewQuest.
Over the years, iD Fresh has diversified its portfolio in line with changing consumer preferences. Its product range now includes whole-wheat parathas, curd, paneer, instant filter coffee, coffee powder, frozen fruit pulp and chutneys. The brand has benefited from rising urban demand for convenient yet clean-label food products.
In November, ahead of a proposed public listing in 2027, the company announced key leadership changes. Abdul Nazer was elevated as co-chair, while Jaipal Singal was appointed vice-chairman, in addition to continuing as global chief financial officer.
Apax Partners has had a long-standing presence in India. Since 2007, the firm has invested around $3.6 billion across 13 transactions and has realised approximately $5.2 billion through eight full exits and one partial exit. Its India portfolio includes companies such as greytHR, Azentio Software, Infogain, GlobalLogic, Zensar, IBS Software, Fractal Analytics, Healthium and Apollo Hospitals.
PC Musthafa’s journey to building iD Fresh Food is rooted in a childhood marked by deep hardship. Born in Chennalode village in Kerala's Wayanad, he grew up in a family with no fixed income. His father worked as a daily wage labourer and farmhand, earning barely Rs 50 a day, while his mother and sister collected firewood from forests to sell locally.
As a child, Musthafa did odd jobs, including selling firewood and assisting his father for Rs 10 a day, to support the household. Despite the deprivation, he showed early entrepreneurial instincts, saving enough to buy a goat — the family’s first asset — which he later traded for a cow.
Education proved to be a turning point. Musthafa completed engineering from NIT and went on to work at Motorola before moving to Saudi Arabia, where he was employed with Citibank. After completing an MBA at IIM Bangalore, he identified a clear gap in the market for hygienic, convenient South Indian breakfast foods. In 2005, along with four cousins, he launched iD Fresh Food with just Rs 50,000 from a 50 sq ft unit in Bengaluru. Early growth was slow, funding was hard to come by and investors showed little interest. Undeterred, Musthafa sold family land in Kerala to expand operations. The bet paid off as demand surged, turning iD Fresh into a widely recognised household brand.
