McDonald's supplier HyFun plans $208 million India IPO

McDonald's and KFC supplier HyFun Foods intends to raise up to ₹2,000 crore ($207.7 million) through an IPO by late 2028, its CEO Haresh Karamchandani revealed. The frozen-foods company anticipates initiating IPO preparations in mid-2027, with the funds earmarked for expansion. Karamchandani explained that the IPO would primarily consist of new shares.

Frozen foods, including French fries, pizzas, and dumplings, are experiencing a surge in popularity in India as consumers opt for convenience amid the rise of quick-commerce. Traditionally, households in the world's most populous nation have favored freshly prepared meals over ready-to-eat options. Karamchandani noted that the industry is on the verge of a transition from fresh to frozen offerings.

Currently, exports to over 40 countries account for approximately three-quarters of HyFun's revenue, but this proportion is expected to decrease to roughly half within five years as domestic demand increases. The Indian food services industry is projected to reach $150 billion by the end of the decade, up from roughly $90 billion, propelled by the expansion of restaurant chains.

HyFun's revenue is anticipated to more than double to nearly ₹3,500 crore by fiscal year 2028, a result of capacity expansion and growth from regional restaurant chains, hotels, and retail demand. Global restaurant chains currently contribute around 40% of HyFun's domestic revenue, but this share is expected to drop to approximately 30% as the firm intensifies local sales.

HyFun serves notable customers such as Indian coffee chain Blue Tokai, PVR Cinemas, and Wow Chicken.