Funding Alert

Doodhvale Farms Raises $3 Million Series A Funding Led by Atomic Capital

• ByStartupStory     |    November 22, 2024

Dairy and daily essentials startup Doodhvale Farms has successfully raised $3 million in a Series A funding round led by Atomic Capital, with participation from Singularity Early Growth Opportunities Fund, Bharat Founders Fund, Indigram Lab Foundation, and angel investors. The funds will be used to expand the startup’s offline distribution network and broaden its online delivery reach, Founder and CEO Aman Jain told YourStory.

Founded in 2019 by Sudhir Jain, Aman Jain, Ishu Jain, and Sanjay Jain, Doodhvale Farms is a vertically integrated platform providing fresh milk, dairy products, and daily essentials through its app and exclusive brand outlets. The company plans to leverage the new funding to strengthen its foothold in the Delhi-NCR region while expanding its delivery operations to additional pin codes.

“Doodhvale Farms’ milk comes from a single source; it is essentially produced at a livestock farm rather than being collected from different village-level collection centres,” said Jain. He highlighted that traditional collection centres often lack control over farming practices and traceability, resulting in a time lag between production and delivery.

A vertically integrated supply chain enables Doodhvale Farms to maintain high standards throughout the production process, ensuring products are adulteration-free and antibiotic-free. Jain added, “This setup allows us to control everything from the feed given to the cattle to the temperature at which milk and other products are stored and transported.”

Doodhvale Farms currently operates through an app-based subscription model and exclusive brand outlets, offering over 100 SKUs, including milk, paneer, khoya, bread, and more. The company has been EBITDA profitable for the past three years, setting it apart in a market dominated by major players like Amul Saras, Country Delight, Akshayakalpa, and Mother Dairy, as well as unorganized milk suppliers.

According to Apoorva Gautam, Founder and Managing Partner at Atomic Capital, the investment will focus on monitoring the startup’s user acquisition and operational efficiency. “Investors will closely track how fast and efficiently the company will acquire users and retain them, along with efficiency in their operations, given the perishable nature of its primary product i.e. milk,” said Gautam.

The dairy delivery sector has seen significant consolidation in recent years. Startups like Milkbasket were acquired by Jio Mart, while Daily Ninja was taken over by BigBasket. Notably, Doodhwala, a similar startup, shut down in 2019 and transferred its assets to FreshToHome.

Despite the competition, Doodhvale Farms remains optimistic about its niche approach. It is focusing on creating market-specific products, such as Mathura Khoya Peda, Alwar Milk Cake, and Punjabi Doda Barfi, to cater to regional demands. “We believe this is not a winner-take-all market and ultimately brands offering seamless experience and product quality will win,” said Gautam.

Last month, competitor Country Delight raised ₹200 crore in debt financing from Alteria Capital to boost its capacity and marketing efforts, underscoring the growing interest in this sector.

Doodhvale Farms aims to differentiate itself through its farm-to-home model and commitment to quality. With fresh capital in hand, the company is poised to accelerate its growth and solidify its position in the dairy and daily essentials market.

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