Akshayakalpa Organic Raises Rs 100 Crore in Series C Funding Round Led by A91 Partners

• ByStartupStory     |    January 11, 2024

Bengaluru-based Akshayakalpa Organic, a leading organic dairy startup, has successfully raised Rs 100 crore (approximately $12 million) in its Series C funding round. The investment was led by A91 Partners and marks a significant milestone for the company, coming after a gap of 16 months since its last major funding round.

The funding round saw significant participation from existing investors, with Rainmatter Capital and British International Investment contributing Rs 18.6 crore and Rs 16.6 crore respectively, as reported by Entrackr. The company’s board passed a special resolution to issue 41,35,010 Series C Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 241.84 each, raising the total amount.

Founded by GNS Reddy and Shashi Kumar, Akshayakalpa Organic has carved a niche for itself in the organic dairy market by supplying high-quality organic milk and related products to over 60,000 consumers daily in Bengaluru, Hyderabad, and Chennai through its direct delivery platform. Its products are also available across 2,000 retail outlets and major e-commerce and quick commerce platforms.

The company’s valuation post-allotment is estimated to be around Rs 590 crore (approximately $72 million) according to TheKredible estimates. However, it’s important to note that this tranche is part of a larger round, and the shareholding pattern may change after the completion of the Series C funding.

In addition to the funding, Akshayakalpa Organic also expanded its Employee Stock Ownership Plan (ESOP) pool by adding fresh options worth Rs 5 crore, bringing the total ESOP size to approximately Rs 22.6 crore (around $2.75 million) as per TheKredible estimates.

Despite its impressive growth in revenue from operations, which surged by 66% to Rs 191 crore in the previous fiscal year ending March 2023 from Rs 115 crore in FY22, the company also experienced an 89% increase in losses, which amounted to Rs 36 crore in FY23.

Akshayakalpa Organic is reportedly in talks to raise an additional $25 million in its Series C funding round. This development comes on the heels of its competitor, Country Delight, a leader in the D2C dairy space, raising $20 million from new and existing investors.

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