Bhubaneswar-based dairy tech startup Milk Mantra faced a financial setback in the fiscal year ending on March 31, 2023. Despite registering profits in two consecutive years, the Eight Road Ventures-backed company reported a net loss of INR 12.3 Cr in FY23. This marked a notable reversal from the INR 13.6 Cr net profit recorded in FY22, with the stagnation of its operating revenue cited as the primary factor for the downturn.
Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra began operations in 2012. The startup offers products under two brands – Milky Moo and Moo Shake, featuring a range of items such as packaged milk, curd, paneer, lassi, mishti dahi, and flavored milkshakes.
Experiencing a modest increase of 2%, its operating revenue reached INR 272.9 Cr in FY23, compared to INR 267.1 Cr in the preceding fiscal year. This marginal growth suggests that the company is encountering challenges in expanding its business.
The primary source of revenue for Milk Mantra came from the sale of pasteurized milk. Nevertheless, revenue from milk sales experienced a 4.6% decline, decreasing to INR 162.5 Cr in FY23 from INR 170.5 Cr in the previous fiscal year.
During the year in review, sales of curd witnessed a marginal uptick, reaching INR 59.5 Cr, compared to INR 53 Cr in the previous fiscal year.
Cottage Cheese & Lassi proved to be lucrative for Milk Mantra, yielding INR 33 crore, reflecting a 17% growth compared to the INR 28.2 crore in FY22.
Taking into account additional revenue streams, the startup’s overall income experienced a 2.2% increase, reaching INR 277.1 crore in FY23, up from INR 271.1 crore in the preceding fiscal year.
The startup witnessed a 13% surge in its overall expenditure, reaching INR 289.4 crore in FY23, compared to INR 256.6 crore in the preceding fiscal year.
The largest chunk of expenditure for Milk Mantra in FY23 was allocated to procurement, totaling INR 220.8 crore. This marked a 14% rise from the INR 193.8 crore spent in FY22.
In FY23, the startup allocated INR 14.9 crore for the transportation of its products, indicating a 16% increase from the INR 12.9 crore spent in the preceding fiscal year. It’s important to emphasize that special arrangements are necessary for transporting dairy products due to their perishable nature, contributing to the associated costs.
Milk Mantra’s employee costs remained constant at INR 18.6 crore in FY23. These costs encompass various employee benefits such as salaries, provident fund contributions, and gratuity payments, among others.
It operates dairy processing facilities in Gop, Konark, Hatibari, and Sambalpur in Odisha. As part of its “Ethical Milk Sourcing Programme,” Milk Mantra has introduced bulk milk coolers in villages, facilitating engagement with over 75,000 dairy farmers in Odisha and neighboring states.
With support from notable investors such as Eight Roads Venture, US International Development Finance Corp, and Aavishkar Venture Capital, Milk Mantra has secured a cumulative funding of $39 million to date. The company faces competition from startups like Country Delight, Stellapps, and Happy Milk, while also contending with established dairy giants like Amul and Mother Dairy.
