Akshayakalpa, the organic dairy startup, is in advanced discussions to secure a $25 million investment from A91 Partners, marking another significant growth-stage deal in the recent surge of funding activities. The company, known for offering a platform where users can order milk and other dairy products, is aiming for a post-money valuation of around $75-80 million. This potential transaction, expected to be the 17th growth-stage deal in the last month, is poised to be formalized and officially announced in the coming weeks, according to an anonymous source familiar with the matter.
The source revealed, “The company is largely present in Bengaluru and is looking to expand its operations beyond the city. 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.”
If the deal proceeds as planned, it would enable Akshayakalpa to strengthen its position in the increasingly competitive dairy products market in India, where traditional players typically dominate. Rival brand Country Delight secured a substantial $108 million in a funding round last year. Milky Mist, another dairy products brand, has also been in discussions with private equity firms like WestBridge Capital to raise funds, as reported in the media.
Established by Dr. GNS Reddy and Shashi Kumar in 2010, Akshayakalpa specializes in producing organic milk and collaborates with over 750 farmer families, as stated by the company. Its products are available at more than 2,000 retail and quick commerce outlets, in addition to being offered through its proprietary platform. The company had previously raised its Series B funding round in September of the previous year from British International Investment (BII), a development finance institution from the UK, and Rainmatter Foundation, in addition to existing investors like Venture Dairy. Lok Capital is also among the company’s backers.
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In FY22, Akshayakalpa recorded a 12% growth in revenue, reaching Rs 116 crore. This figure marked a significant contrast to the 70% increase in revenue seen during the 2020-21 fiscal year. Nevertheless, the company managed to reduce its loss to Rs 19.4 crore in FY22 from over Rs 30 crore in the previous fiscal year.
