Bengaluru-based organic dairy products manufacturer Akshayakalpa Organic has secured $15 million (around Rs 117 crore) as a part of its Series B funding round led by UK’s development finance institution (DFI) British International Investment, with participation from Rainmatter and Venture Dairy, a top executive told VCCircle.
We plan to use the fresh funds to ramp up the company’s direct distribution channel, onboarding more retailers and expanding footprints across Pune, Mumbai, Kochi and other southern regions, said Shashi Kumar, founder and CEO at Akshayakalpa Organic.
Founded by Kumar and GNS Reddy in 2010, Akshayakalpa Organic offers milk and milk products that are free from antibiotics, synthetic additives and chemical pesticide residues. The startup claims to work with 750 farmer families and reaches over 60,000 consumers daily with its offering of organic milk and milk products via its direct delivery platform, 2000 retail outlets and e-commerce platforms. Currently, it has 550 employees across India.
“Post this investment, we look to scale the density of our deliveries. We will also aim for new product launches which have been slotted over a period of next two to three years. We are also targeting export markets, primarily into the US, Canada and Middle-East,” Kumar said.
“With support….we hope to continue retaining our products‘ uncompromised quality and serving more customers while continuing to deepen our efforts to create sustainable farming systems and restore dignity to rural India,” he added.
“We recognize the company’s potential to build a thematic portfolio within the fast-growing food industry and in an increasingly consumer-conscious market…our capital will support the company’s expansion, helping to increase productivity and improve income for farmers while also bringing sustainably farmed products directly to more consumers,” said Manav Bansal, Managing Director and Head of India, BII.
"The processes they have in place to ensure sustainable milk production and the support they offer to improve farmer livelihoods are impressive. We are excited to support them on this journey," said Nithin Kamath, Founder and CEO, Zerodha and Rainmatter.
BII, formerly CDC group, last year announced a commitment to invest up to $1 billion in climate funding in India over five years.
Last year, Akshayakalpa raised nearly Rs 25 crore from impact venture capital firm Lok Capital and US-based early-stage fund Venture Dairy.
The company had posted net sales of Rs 117 crore during fiscal year 2021-22 as against Rs 103 a year before, Kumar added.
Not too many transactions have been reported in recent times in the dairy space in India. In May, Country Delight, a direct-to-consumer (D2C) food essentials brand, raised $108 million in Series D round taking its valuation to $615 million.
