UzhavarBumi Agro Products Pvt. Ltd, a dairy products company, has raised Rs 1.7 crore (around $221,686 at current exchange rates) from Native Angels Network, the investment arm of the Tier-II and Tier-III focussed Nativelead.
Madhuranthagam-based UzhavarBumi was set up in 2017 by Vetrivel Palani and Paneerselvam. The company says it works directly with farmers and workers in the space to provide fresh milk to consumers with a focus on unadulterated products.
“We began with the notion that organic and fresh produce should be commodities that are available for all, regardless of their socio-economic status,” Palani said.
The company’s primary offering is fresh milk, which it says it provides to customers within 12 hours of sourcing. Other products include ghee and honey. Currently, it delivers up to 4,000 bottles a day and services over 50 areas with more than 2,500 customers, according to its website.
Sankar Kanagasabai acted as the lead investor in the funding exercise.
Meanwhile, Nativelead says it helps connect startups with established entrepreneurs in their region. These established investors can then contribute both their money and strategic expertise to help these startups grow their business.
The investment platform says it has engaged with at least 300 startups and counts 242 investors across six chapters. Other startups it has funded include SP Robotics, Fresh World, Happy Hens and Carbon Masters, according to its website.
Separately, Kanagasabai said he and the other members of the Native Angels Network were confident in their investment because of its product and social impact focus.
Deals in the dairy segment
In October last year, whole foods and dairy startup NutriMoo raised $1 million (around Rs 7.08 crore) in a strategic investment from IndoCan Honey Pvt. Ltd, a business entity that focusses on premium quality honey. NutriMoo said it would use the funds for market expansions.
In July, VCCircle exclusively reported that impact venture capital firm Lok Capital had invested in a Karnataka-based company that produces and sells organic milk and dairy products. Also that month, another VCCircle exclusive reported that British development finance institution CDC Group Plc had backed another startup working in India’s dairy space.
In February, Matrix Partners India led a $10 million (around Rs 70 crore) investment round in dairy startup Country Delight. The Gurugram-based startup’s existing investor Orios Venture Partners also participated in the round.