McDonald's supplier HyFun plans $208 million India IPO

McDonald's and KFC supplier HyFun Foods is preparing to raise up to 20 billion rupees ($207.7 million) in an IPO by late 2028, its CEO revealed. Haresh Karamchandani, the company's CEO, indicated that the initial public offering would commence in mid-2027. The funds would be used to expand capacity and strengthen the domestic market focus for HyFun.

The frozen-foods maker expects to see a shift from fresh to frozen food consumption in India as households increasingly opt for convenience due to a burgeoning quick-commerce boom. Currently, exports to over 40 countries account for roughly three-quarters of HyFun's revenue, but Karamchandani anticipates this proportion to decline to about half within five years as local demand grows.

India's food services industry is projected to reach $150 billion by the end of the decade, up from $90 billion, according to Redseer Strategy Consultants. HyFun anticipates its revenue to nearly double to nearly 35 billion rupees by fiscal year 2028, fueled by capacity expansion and growth from regional restaurant chains, hotels, and retail demand.

Currently, global restaurant chains contribute around 40% of HyFun's domestic revenue, but this share is anticipated to fall to around 30% as the company intensifies its local sales efforts.

Among HyFun's clientele are Indian coffee chain Blue Tokai, movie theater chain PVR Cinemas, and fast-food chain Wow Chicken.