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What does a company do when demand is booming, business is growing and it needs money to expand? Well, they bring an IPO.
You might not have heard of HyFun Foods, but there’s a good chance you’ve eaten something it makes. The company supplies frozen food products to major restaurant chains and counts Blue Tokai, PVR Cinemas and Wow! Chicken among its customers.
The deets: HyFun Foods plans to raise up to ₹2,000 crore through an IPO by late 2028, as it bets on rising demand from restaurants, retailers and quick-commerce platforms.
The company expects to start preparing for the IPO around mid-2027. Most of the issue is expected to consist of new shares, meaning much of the money raised would go directly to the company to fund expansion.
The why: India is slowly warming up to frozen food. French fries, pizzas, dumplings and other ready-to-cook products are becoming more common as people look for quicker meal options and quick-commerce makes these products easier to buy.
Traditionally, Indian households have preferred freshly cooked meals. But HyFun believes the industry is now at the beginning of a bigger shift from fresh to frozen food.
Something interesting: HyFun currently gets around three-fourths of its revenue from exports to more than 40 countries. But the company expects exports to contribute only around half of revenue within five years as its India business grows.
Moreover, HyFun expects its revenue to more than double to nearly ₹3,500 crore by FY28, helped by higher production capacity and rising demand from hotels, regional restaurant chains and retail customers.
Global restaurant chains currently make up around 40% of HyFun's domestic revenue. That share could fall to roughly 30% as the company expands sales to other customers in India.
Zoom out: India's food services industry is expected to grow from around $90 billion to $150 billion by the end of the decade, according to Redseer Strategy Consultants.
