Akshayakalpa Organic, a Bengaluru-based startup that specializes in organic dairy products, has raised $12.8 million in its Series C funding round led by A91 Partners. The funding comes after a gap of 16 months for the company, which claims to supply organic milk and related products to over 65,000 consumers daily in three cities.
Investment Details
According to regulatory filings sourced from the Registrar of Companies (RoC), Akshayakalpa Organic’s board has passed a special resolution to issue 41,35,010 Series C CCPS at an issue price of Rs 248.64 each to raise Rs 102.8 crore or $12.8 million. A91 Partners led the round with Rs 66 crore, while existing investors Rainmatter Capital and British International Investment, the UK’s development financial division, infused Rs 18.4 crore and Rs 18.4 crore respectively.
According to TheKredible estimates, the company has been valued at around Rs 600 crore or $74 million post-allotment. The company also passed a separate resolution to increase the size of the ESOP pool by adding fresh options worth Rs 5.2 crore. As per TheKredible estimates, the total ESOP size of Akshayakalpa Organic after adding fresh options is worth Rs 23 crore or $2.85 million.
Business Overview
Founded by GNS Reddy and Shashi Kumar in 2010, Akshayakalpa Organic aims to provide organic and healthy dairy products to urban consumers while empowering rural farmers. The company operates its own farms and processing units, where it follows organic practices and animal welfare standards. The company also provides training, technology and financial support to farmers who partner with it.
Akshayakalpa Organic offers a range of products, such as milk, curd, cheese, paneer, ghee and butter, which are delivered directly to consumers through its own platform or through third-party platforms such as BigBasket, Swiggy and Dunzo. The company also sells its products through retail outlets across Bengaluru, Hyderabad and Chennai.
Growth and Competition
Akshayakalpa Organic witnessed a substantial 70% increase in revenue from operations, reaching Rs 195.5 crore in the fiscal year ending March 2023, compared to Rs 115 crore in FY22. However, according to TheKredible, its losses also rose by 92% to Rs 37 crore in FY23.
The company is reportedly in talks to raise $25 million in Series C. In September 2022, it scooped up $15 million in a Series B round from British International Investment, Rainmatter Foundation and others.
The company faces competition from other players in the D2C dairy space, such as Country Delight, Milk Basket and Licious. Last week, Country Delight raised $20 million from new and existing investors at a valuation of over $300 million.