Certified organic dairy enterprise Akshayakalpa Organic, on Thursday announced the raising of $15 million in Series B funding round from both existing and new investors.
The new investors in this round were British International Investment (BII), a development finance institution from the UK, and Rainmatter Foundation. Existing investor Venture Dairy also participated in the round.
Founded in 2010 by Dr GNS Reddy and Shashi Kumar, Akshayakalpa sells organic milk, milk products and other food items such as cheese, buttermilk, honey and bread, among others directly to customers. The startup claims that these products do not consist of antibiotics, synthetic additives, hormones, and chemical pesticide residue.
To manufacture these products, Akshayakalpa Organic works closely with young farmers that have discontinued farming operations due to economic non-viability. The startup grooms these farmers as entrepreneurs by providing them bank linkages, extension outreach, technical services, and market access, according to the startup.
Akshayakalpa plans to aggressively invest in Bengaluru, Chennai, and Hyderabad markets, expand into new geographies of Pune, Mumbai and Kochi and take its long-shelf organic dairy products pan India. Today, Akshayakalpa Organic works with 750 plus farmer families.
It supplies organic milk and milk products to 60,000+ consumers daily in Bengaluru, Hyderabad, and Chennai through its direct delivery platform. Its products are available across 2,000 plus retail outlets and all the major e-commerce/quick commerce platforms.
“Over the last few years, consumers have become more conscious about living healthier lifestyles,” said Shashi Kumar, co-founder and CEO at Akshayakalpa Organic. “We will continue to serve more customers while deepening our efforts to create sustainable farming systems,” he added.
“We recognize the company’s potential to build a thematic portfolio within the fast-growing food industry and in an increasingly consumer-conscious market. We are happy that our capital will support its expansion, increase productivity and improve income for farmers while also bringing sustainably farmed products directly to more consumers.” explains Manav Bansal, Managing Director and Head of India, BII.
Nithin Kamath, Founder and CEO of Zerodha and Rainmatter said “The more I learnt from Shashi and his team about what goes into the process of milk production, I have been conscious about how it is sourced. The processes they have in place to ensure sustainable milk production and the support they offer to improve farmer livelihoods are impressive. We are excited to support them on this journey.”
Sameer Shisodia, CEO of Rainmatter Foundation, added “Sustainable farming practices are key to ensuring food security for our next generation and happy to see Akshayakalpa taking the lead in that space. We believe this investment will go a long way to demonstrate that development can lead to commercial success.”
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