Trust as the Currency of iD Fresh Food: A Pioneering Business Model

In the heart of Mumbai’s Kandivali suburb, a unique ritual unfolds every morning. A white Maruti Omni enters the gated Oberoi Park View residential community, bringing with it a sense of innovation and trust. This ritual, orchestrated by iD Fresh Food, a Bengaluru-based ready-to-cook fresh food brand, involves residents queuing up to collect their packed ready-to-make breakfast products, such as idli/dosa batter, parota, and paneer, directly from the open car.

The distinctive aspect of this Trust Shop model is its reliance on trust—100 percent trust and zero percent verification. There’s no salesperson collecting money, no security guard overseeing the transactions, and no vending machine for payments. Residents simply collect the products they ordered through a resident welfare association (RWA) member, who coordinates the order via WhatsApp or phone call. Payment is made at the residents’ convenience through e-wallets. It’s a system built on faith, and it’s working remarkably well.

The brain behind this innovative approach is PC Musthafa, the co-founder of iD Fresh Food. The Trust Shop pilot began in April across 500 RWAs in Mumbai, aiming to provide a convenient solution during the lockdown when traditional retail stores were closed. Seven months later, the vans are still rolling, and sales have reached Rs 50 lakh, with an impressive 97 percent of customers faithfully paying for their orders.

The success of the Trust Shop model is not just a product of necessity during the pandemic; it’s a result of flipping the traditional business model. Musthafa firmly believes in empowering customers by placing complete trust in them. This belief has turned into a unique business strategy that has propelled iD Fresh Food to new heights.

The story of iD Fresh Food traces back to 2005 when Musthafa and his four cousins decided to venture into the food business. Dissatisfied with the quality of idli/dosa batter supplied by a local maker, they decided to create their own. The journey wasn’t smooth, with initial struggles in gaining consumer trust for a packaged food item in wet form.

However, the tide turned in 2008 when Musthafa committed full-time to the business. The company focused on innovation, introducing a sealable and reusable batter pack inspired by a boat. They also ventured into various product innovations, including a wet grinder capable of churning out 1,500 kg of batter per hour, a machine mimicking handmade layered parotas, and chemical-free paneer made from concentrated lemon juice. In 2016, iD Fresh Food experimented with Trust Shops in multiple cities. Despite initial challenges, the model gained traction, demonstrating that Indians could be trusted. Musthafa acknowledges that emotional bonds and deep consumer trust are crucial advantages of a trust-based business model.

Despite the economic challenges posed by the COVID-19 pandemic, iD Fresh Food maintained its momentum. In September, the company achieved its best monthly sales at Rs 24.2 crore. The Trust Shop model has proven financially viable, with only 3 percent of customers failing to pay for their orders. PremjiInvest, the family office of Wipro founder Azim Premji and an investor in iD Fresh Food, emphasizes the brand’s efficient use of technology and innovative solutions. The company aims to become a Rs 1,000 crore entity in three years, showcasing the potential of a trust-driven business model.

PC Musthafa believes that trust could be the future of the business world. By placing trust in customers, companies can achieve better profitability and become beloved brands. He affirms, “The best way for someone to trust you is to trust them,” encapsulating the essence of iD Fresh Food’s pioneering business model.