Akshayakalpa Organic, an organic dairy startup that delivers milk and related products to consumers through its direct delivery platform, has raised Rs 100 crore or $12 million in its Series C round led by A91 Partners. The funding has come after a gap of 16 months for the Bengaluru-based company.
A91 Partners co-led the round with existing investors
The board at Akshayakalpa Organic has passed a special resolution to issue 41,35,010 Series C CCPS at an issue price of Rs 241.84 each to raise Rs 100 crore or $12 million, its regulatory filings sourced from the Registrar of Companies (RoC) show. A91 partners led the round with Rs 64.8 crore while existing investors Rainmatter Capital and British International Investment, the UK’s development financial division, infused Rs 18.6 crore and Rs 16.6 crore respectively.
Akshayakalpa plans to invest in new markets and geographies
Akshayakalpa claims to supply organic milk and related products to over 60,000 consumers daily in Bengaluru, Hyderabad, and Chennai through its direct delivery platform. Its products are available across 2,000 retail outlets and all the major e-commerce and quick commerce platforms. According to TheKredible estimates, the company has been valued at around Rs 590 crore or $72 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 crore. As per TheKredible estimates, the total ESOP size of Akshayakalpa Organic after adding fresh options is worth Rs 22.6 crore or $2.75 million.
Akshayakalpa 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. Last week, its competitor and leader in the D2C dairy space: Country Delight raised $20 million from new and existing investors.
Akshayakalpa competes with other D2C dairy brands
Akshayakalpa competes with Milk Mantra, Milky Mist, Country Delight and several other D2C dairy brands which also sell other milk-based and organic products. The company claims to work with over 750 farmer families and witness a CAGR growth of 60% in the last five years. While Akshayakalpa is yet to disclose its financials numbers for FY22, its scale surged 71.7% to Rs 103 crore from nearly Rs 60 crore in FY20, as per its annual financial statements with the RoC.
The annual losses of the company shot up five times to Rs 31 crore in FY21 from Rs 6.2 crore in the previous fiscal year (FY20). According to Kumar, Akshayakalpa posted net sales of Rs 117 crore in FY22.