Oatey, a plant-based dairy alternative startup backed by cricket star Ajinkya Rahane, is making significant strides in its mission to revolutionize India’s dairy industry. The startup is focused on providing healthier and more sustainable options to consumers in a country with deep-rooted cultural ties to dairy products.
“We closed our pre-seed round early last year through friends and family, raising about half a crore. We’ve managed our funds efficiently and still have runway left from that round. Currently, we are in the process of raising a seed round. We have received a couple of commitments and a few term sheets, although the dispersal of these funds is yet to be finalized,” shares Ankush Jamadagni, Co-Founder and CEO of Oatey.
Strategic Partnerships and Expansion Plans
Oatey’s business model spans both B2B and B2C channels, with a significant portion of sales coming from the B2B segment. “We have partnered with a coffee brand, and we’re looking to expand into more cafes. We supply to hotel chains like Taj Hotels and Resorts, The Leela Palace, and JW Marriott BLR, as well as corporates such as Google, Nvidia, Atlassian, and JP Morgan, who are placing employee health & sustainability on high priority” Ankush shares.
The startup is also actively pursuing strategic partnerships in the aviation sector and plans to expand its international reach with millet milk, a product that taps into India’s rich agricultural heritage. Plans are also underway to export flavored and millet milk to Europe.
Continue Exploring: Plant-based dairy startup OATEY gains momentum with Ajinkya Rahane’s investment and endorsement
Despite operating with a lean team, Oatey has achieved cash positivity—an impressive feat in a nascent market. “We have built this brand profitably, and we are actually cash positive. To give you an idea, we are generating between 4 to 5 lakhs and some months up to 10 lakhs a month. This fluctuates because we are in a category creation space,” notes Ankush.
Innovative Plans in the Pipeline
Looking ahead, Oatey is preparing to roll out several new initiatives aimed at strengthening its presence in the B2C market. The company plans to increase collaborations with influencers and is exploring subscription models on its website to enhance consumer engagement.
By reducing reliance on third-party marketplaces and focusing on direct sales through its website, Oatey aims to improve margins and offer more competitive pricing to customers. “Currently, we lose a significant portion of our gross sales to platforms like Amazon, Flipkart, and other Q-commerce market players. A subscription model would encourage customers to buy directly from our website, providing us better margins, which we can pass on as better promos to our consumers,” Ankush explains.
Additionally, Oatey is set to unveil a new brick-and-mortar project later this month, which promises to offer a fresh avenue for consumer interaction. “There’s a particular project we’re working on that’s going to be a small surprise, maybe towards the end of next month,” Ankush hints, suggesting that this initiative will further solidify the brand’s foothold in the market.
