HyFun Foods, a Gujarat-based frozen food manufacturer, is drawing interest from several venture capital and private equity funds as it plans to double its manufacturing capacity by 2026 and expand its product portfolio. The company, with annual revenues of ₹1,000 crore, is also considering an initial public offering (IPO) within the next 2-3 years to raise capital for future growth.
Haresh Karamchandani, Managing Director & Group CEO of HyFun Foods, told TNIE that private equity funds have shown interest in investing. “We are weighing our options—whether to approach the capital market directly or raise funds through a PE round before listing,” he said. According to Karamchandani, several investment bankers have already approached the company, indicating it is ready for a public offering.
Founded in 2015, HyFun Foods specializes in potato-based frozen foods such as French fries and hash browns. The company exports 70% of its products, primarily to Southeast Asia and Gulf countries. Recently, it began supplying to Walmart, the largest retailer in the US.
With a target of ₹5,000 crore in revenue by 2028, HyFun has embarked on an aggressive expansion strategy. It plans to double the capacity of its Ahmedabad facility from 26 metric tonnes per hour (MTPH) to 50 MTPH by 2026, with an investment of ₹1,000 crore over the next year. The company has also entered the retail segment under its 'HyFun' brand, offering packaged frozen foods.
“Becoming a listed company will not only help us raise capital for expansion but also enhance brand recognition,” Karamchandani added.
HyFun claims to be one of India’s largest contract farming companies, working with over 7,500 farmers—mostly in Gujarat. The company is now expanding its contract farming footprint to Madhya Pradesh and Uttar Pradesh. It is already growing its presence in MP and plans to set up a new manufacturing facility there by 2028, with an additional investment of ₹500 crore. For the first time, HyFun is also exploring contract farming of onions in India.
Currently, HyFun’s investments are financed through a mix of debt and internal accruals. The company carries approximately ₹500 crore in debt on its books.