The net loss of Dairytech startup Country Delight surged by more than 6.5 times to reach INR 186.4 Crore during the financial year 2021-22 (FY22), compared to INR 28.2 Crore in the preceding fiscal year. This significant increase in losses can be attributed to a substantial rise in the company’s expenses.
The startup headquartered in Delhi-NCR witnessed a 1.6-fold increase in its operational revenue, reaching INR 542.6 Crore in FY22, as compared to INR 320.7 Crore in FY21.
Country Delight derives its revenue from the sales of various products, including milk, curd, paneer (cottage cheese), ghee, eggs, fruits, vegetables, and coconut water.
During the fiscal year 2021-22 (FY22), the company garnered INR 367.8 Crore from milk sales, marking a notable increase from the INR 251.8 Crore recorded in FY21. Furthermore, revenue from the sale of other products amounted to INR 171.3 Crore in FY22, showcasing a substantial rise from the INR 68.2 Crore generated in the preceding fiscal year.
The overall income, encompassing additional sources of revenue, experienced a 68% upswing, reaching INR 547.2 Crore in FY22, as compared to INR 325.6 Crore in the preceding year.
Meanwhile, the cumulative expenditures surged by over two-fold, soaring to INR 733.7 Crore from INR 353.9 Crore in FY21. The largest proportion of these expenses, standing at INR 288.2 Crore, was attributed to the cost of materials consumed, marking a substantial 56.8% increase from the INR 183.7 Crore recorded in FY21.
The startup allocated significant resources to promotional activities during FY22. Expenditures on promotions witnessed an almost fivefold surge, escalating to INR 124.6 Crore from the previous FY21 figure of INR 25.3 Crore.
Employee benefit expenditures saw a robust growth of 78.7%, reaching INR 67.4 Crore in comparison to the FY21 figure of INR 37.7 Crore. These expenses encompass a range of components such as employee salaries, PF contributions, and other welfare benefits for employees.
The rise in employee welfare benefits signifies a corresponding expansion in the number of employees. According to data from LinkedIn, Country Delight boasts a workforce exceeding 1,000 individuals.
Established in 2013 by Chakradhar Gade and Nitin Kaushal, Country Delight operates on a subscription-oriented framework, procuring milk directly from farmers and facilitating doorstep deliveries for customers. The company further extends its offerings to encompass an array of products, including bread, ghee, assorted dairy items, as well as fruits and vegetables.
To date, the startup has secured in excess of $158 million in funding and achieved a recent valuation surpassing $600 million. Notable investors in the company include Orios Venture Partners, Elevation Capital, and Temasek.
Country Delight faces competition from Milk Mantra, an Odisha-based company. In FY22, Milk Mantra witnessed a 48% surge in revenue, reaching INR 271 Crore, in contrast to the INR 182 Crore reported in FY21. However, its profit experienced a decline of 36%, decreasing to INR 13.6 Crore from the FY21 figure of INR 21.3 Crore.
Furthermore, Country Delight is in competition with Milk Basket, which has been acquired by Reliance Retail. The integration of Milk Basket with JioMart is expected to lead to the departure of more than 100 employees.
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