After witnessing hyper-growth online, iD Fresh Food is now focusing on a hybrid business model

The Covid pandemic saw an e-commerce boom like never before. However, the surge was seen touching moderating levels in 2022 and 2023 seems to be dedicated to striking a balance between online and offline channels. 

Bengaluru-based fast-moving consumer goods company (FMCG) iD Fresh Food is now focusing on expanding its offline distribution network after an unrealistic year in terms of growth during the pandemic. The PC Mustafa-led company saw an annual growth of 300 per cent (from online channels) in FY22, which came down to 100 per cent in FY23 and has now dipped to almost 30 per cent. “We don’t expect those growth patterns to continue,” Rahul Gandhi, iD Fresh Food’s Chief Marketing Officer told Business Today.  

Gandhi said that the team is realistic about not seeing those years of hyper-growth again. “There has been some shrinkage happening in the e-commerce space,” he said. The e-commerce space was a blessing in disguise as it helped navigate through the crisis by getting essentials delivered amid the pandemic-induced lockdowns.

Data reveals that e-commerce spurred economies to go digital and scale up but the peak is now over. According to estimates by the International Monetary Fund, the online share of total spending reached 14.9 per cent during the peak of the pandemic but dropped to 12.2 per cent subsequently.  

However, iD Fresh Food has not done away with the idea of e-commerce even though its priorities have changed. “It (e-commerce) still contributes about 30 per cent, which is a significant share,” Gandhi told BT. To ramp up its offline presence, the company is planning to dig deeper into cities such as Delhi, Mumbai, Pune, Bengaluru, Chennai, and Hyderabad, which are the largest contributors. Gandhi also noted that the company has also found a loyal base of customers in the Middle East region, including Saudi Arabia, who thrive on iD’s dosa batter and ‘parota’.  

The company crossed Rs 500 crore in revenue in FY23 and is hoping to touch Rs 700 crore by FY24. The brand, which has a presence in about 45 cities, is growing at a rate of 30-40 per cent annually, Gandhi noted.  

The company has been able to carve a niche with its products, especially the dosa batter. It is also in the process of rolling out a host of new products, including a butter stick, which makes spreading butter on bread super easy.

Notably, iD currently is available across 35,000 retail outlets. Is the company planning to introduce its exclusive brand outlets? Initially, Gandhi dismissed the idea of an exclusive store by saying, “We don’t have an experience-driven business model”. But prod him deeper, and he said conversations around the same have been doing rounds within the company. 

“We have been mulling about iD Experience centers but nothing is on the cards yet,” he said.
 

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