HyFun Foods, a supplier to McDonald’s and KFC, plans to raise Rs 2,000 crore ($207.7 million) through an initial public offering (IPO) by late 2028, as demand for frozen foods grows across restaurants, retail and quick-commerce platforms.
As per a Reuters article, the company is expected to begin preparations for the IPO in mid-2027, according to Haresh Karamchandani, CEO, HyFun Foods. The issue will largely comprise fresh shares and will be used to fund capacity expansion and strengthen the company’s focus on the domestic market.
Frozen foods such as French fries, pizzas and dumplings are gaining popularity in India as consumers increasingly look for convenient food options, supported by the rapid growth of quick commerce.
Indian households have traditionally preferred freshly prepared meals over ready-to-eat and frozen products. However, Karamchandani said the industry is now approaching a shift towards frozen food. “The industry is at the cusp of a shift from fresh to frozen,” he said.
HyFun currently exports to more than 40 countries, with international markets accounting for around three-fourths of its revenue. Karamchandani expects the share of exports to decline to about half of the company’s revenue over the next five years as domestic demand increases.
India’s food services industry is expected to grow to $150 billion by the end of the decade from around $90 billion currently, supported by the expansion of restaurant chains, according to Redseer Strategy Consultants. HyFun expects its revenue to more than double to nearly Rs 3,500 crore by fiscal 2028. The growth is expected to be driven by capacity expansion, increased business from regional restaurant chains and hotels, and rising retail demand.
Global restaurant chains currently account for around 40% of HyFun’s domestic revenue. The company expects this share to decline to about 30% over the next two years as it expands its presence among local customers.
HyFun’s customers in India include coffee chain Blue Tokai, PVR Cinemas and Wow Chicken. The company’s planned IPO comes as India’s frozen food market gains momentum, with changing consumption habits, expanding food-service businesses and the growth of quick-commerce platforms supporting demand.
