ID Fresh Foods Equipment and Vehicle Leasing

Closed
10 Cr

Deal Size

100% funded ₹9.31 Crraised

Deal Summary

ID Fresh Foods, was started in 2005 by Mustafa PC, a dynamic entrepreneur and an MBA from IIM Bangalore along with his cousins. With high brand recall, ID stands for fresh, hygienic and healthy RTC foods at affordable prices to customers looking for convenience, preservative free and home-made quality traditional Indian food mixes. ID Fresh Foods has achieved a yearly turnover of around Rs 100 Crores for the 2015-16 financial year.

In 2014, they raised Venture Capital of Rs. 35 Crores from US based Helion. Premji Invest, the investment arm of Wipro billionaire Azim Premji, has also infused Rs. 170 crore into iD fresh in January 2017. This acquisition amounts for 25% of stake in the company, valuing it at over Rs. 670 crores.

Mustafa is a conscientious Muslim who is keen to develop a Sharia-compliant financing model for his business. Rehbar had raised Rs. 25 lakh for iD Fresh for chiller leasing in November 2015 as the first round of investment. The total funds raised thus far after subsequent rounds of chiller and vehicle leasing investments has reached Rs. 8.78 crore from over 140 investors. The detail of the existing deal is mentioned in the body of the report below.

Currently they require delivery vehicles to add to the current fleet for product distribution in Karnataka and Kerala. Rehbar has leased vehicles to iD Fresh in an earlier round of investment. This deal also follows a leasing structure where partnerships will be created with the investors as partners to purchase and lease the required vehicles to iD. Unlike the initial rounds of this deal, in this round there will be partial capital repayments along with the monthly profits. Hence the investors would not be getting the capital repaid to them in lump-sum at the end of the investment tenure. 

 

Brief details of the deal

Total investment amount – Rs. 53 Lakh

Minimum investment ticket size – Rs. 5 lakh

Investment tenure – 5 years

Method of payment of profits & principal – The rental amount is paid out to the investors on a monthly basis after keeping a reserve for maintenance.

Expected profits/losses for the investment – Gross expected internal rate of return (IRR) of 16% annualized.

Risk profile – Medium to low risk investment due to excellent track record and strong financial position of company and ownership of being with investors

                                         

Brief details of the business

Name of the business – ID Fresh

Nature of the business – FMCG

Location – Bangalore, Mumbai, Chennai, Hyderabad, Pune, Mysore and Dubai

Current annual turnover – > Rs. 100 crore

Year when the business started – 2005

Name of the business promoter – Mustafa P C

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