Organic dairy startup Akshayakalpa is currently in advanced discussions with A91 Partners to secure a substantial $25 million (INR 200 crore) in funding. This development marks yet another notable growth-stage deal in recent weeks, underscoring the resurgence in overall funding activity.
The company, which offers a platform for users to order milk and various dairy products, is aiming for a post-investment valuation in the range of $75-80 million, according to an individual familiar with the situation. The deal, which could be the 17th growth-stage transaction in the past month, is expected to be concluded and formally disclosed in the coming weeks, the source added, requesting anonymity.
“The company is largely present in Bengaluru and is looking to expand its operations beyond the city,” the person quoted above said.
“It has some presence in Chennai and Hyderabad, and it will look to penetrate deeper into these two cities. I don’t think as of now, there are talks of expansion beyond these cities,” they added.
Queries sent to A91 Partners and Akshayakalpa went unanswered.
If the transaction moves forward as intended, it will enable Akshayakalpa to strengthen its standing in India’s fiercely competitive dairy products market. In this market, traditional players usually dominate the landscape. Notably, competitor brand Country Delight successfully obtained a significant $108 million in a funding round just last year. Additionally, Milky Mist, another prominent dairy products brand, has reportedly been engaging in discussions with private equity firms such as WestBridge Capital to raise funds, as highlighted in media reports.
Established in 2010 by Dr. GNS Reddy and Shashi Kumar, Akshayakalpa specializes in the production of organic milk and collaborates with more than 750 farmer families, as stated by the company. Beyond its proprietary platform, the company’s products are accessible through over 2,000 retail and quick commerce outlets.
Having successfully secured its Series B funding round in September last year, the company garnered support from British International Investment (BII), a UK-based development finance institution, and the Rainmatter Foundation, in addition to continued backing from existing investors like Venture Dairy. Lok Capital is also among the company’s supporters.
Akshayakalpa’s revenue in FY22 saw a 12% growth, reaching INR 116 crore. This growth notably contrasts with the substantial 70% increase recorded in the figures during 2020-21. Nonetheless, the company successfully reduced its loss in FY22 to INR 19.4 crore from over INR 30 crore in the preceding fiscal year.
