iD Fresh Food, a prominent startup based in Bengaluru, has announced an impressive financial turnaround for the financial year 2023-24 (FY24) by reporting a net profit of ₹1.84 crore. This marks a significant recovery from the company’s previous year’s net loss of ₹23.25 crore in FY23. The achievement of profitability signifies the company’s effective strategies in reducing cash burn while simultaneously boosting operational revenues.
| Table of Contents |
|---|
| Financial Performance |
| Cost Management |
| Revenue Breakdown by Products |
| Expense Analysis |
| Market Position and Competitive Landscape |
| Funding and Leadership |
| Conclusion |
Financial Performance
The company’s notable turnaround journey can be attributed to its robust financial performance in FY24. iD Fresh Food reported a net profit of ₹1.84 crore, a remarkable contrast to its preceding financial year where it incurred a significant net loss of ₹23.25 crore. The rebound in profitability was underpinned by a substantial increase in operational revenue, which saw a rise of 16% to reach ₹395.76 crore, compared to ₹340.9 crore in the previous year.
Cost Management
A key element of iD Fresh Food’s recovery has been its focused approach to cost management. The company’s total expenses grew at a slower rate than its revenue, increasing by only 8.4% to ₹398.75 crore from ₹367.94 crore in FY23. This improved expense management ultimately contributed to the turnaround in their financial health.
Revenue Breakdown by Products
Delving deeper into revenue sources, the company’s batter products have played a pivotal role in driving overall revenue growth. Sales of these popular products reached ₹198.75 crore, rising from ₹163 crore in the prior year, thus accounting for around half of the total revenue. Other product segments also demonstrated promising performance:
| Product Segment | Revenue (FY24) | Revenue (FY23) |
|---|---|---|
| Batter Products | ₹198.75 crore | ₹163 crore |
| Parotas | ₹95.1 crore | N/A |
| Bread | ₹101.6 crore | N/A |
| Dairy Products | ₹68.6 crore | N/A |
Expense Analysis
Analyzing the expenses, we find key categories that contributed to the overall increase. The cost of materials consumed grew by 12.2% year-on-year, amounting to ₹139.3 crore. Similarly, expenses related to employee benefits rose to ₹77.1 crore, reflecting an increase of 8.7%. iD Fresh Food also focused on enhancing its brand visibility, as evidenced by a significant rise in advertising and promotional expenses, which jumped by 31.2% to ₹34.33 crore.
Market Position and Competitive Landscape
iD Fresh Food operates within the intensely competitive realm of the ready-to-cook food sector. It faces formidable competition from established brands such as MTR, Tata, Gits, and Aashirvad (ITC). Despite the challenges posed by rivals, iD Fresh Food has carved a niche for itself, leveraging its focus on quality and innovative product offerings.
Funding and Leadership
In terms of funding history, iD Fresh Food successfully raised $68 million in a Series D round in January 2022, co-led by NewQuest Capital Partners and Premji Invest, bringing its total funding to over $119 million. This robust funding has enabled the company to amplify its business operations and expand its market reach. In a strategic move to enhance leadership, iD Fresh Food appointed Rajat Diwaker, a former senior executive at FMCG giant Marico, as its new India CEO earlier this year.
Conclusion
The financial results for FY24 illustrate a commendable turnaround for iD Fresh Food, transitioning from significant losses to a profit of ₹1.84 crore. This reflects effective operational strategies and prudent expense management. Looking ahead, the company appears well-positioned to sustain its growth and strengthen its role in the ready-to-cook food market, making it a key player to watch in the industry.
FAQ
1. What products does iD Fresh Food offer?
iD Fresh Food specializes in packaged ready-to-cook and frozen food products, including idli and dosa batter, parotas, chapati, paneer, and curd.
2. What significant changes led to iD Fresh Food’s profitability in FY24?
The company’s profitability was driven by reduced cash burn, increased operational revenue, and effective cost management strategies.
3. Who are the competitors of iD Fresh Food?
iD Fresh Food competes with established brands such as MTR, Tata, Gits, and Aashirvad (ITC) in the ready-to-cook food sector.
4. What was the total funding raised by iD Fresh Food?
The startup has raised over $119 million in total funding, with the latest round being $68 million in January 2022.
