Investment

Bengaluru-Based Ice Cream Brand Dairy Day Raises Funding From Kedaara Capital

• ByStartupStory     |    March 21, 2024

Kedaara Capital has announced a significant investment in Dairy Classic Ice Creams Private Limited, popularly known as Dairy Day, headquartered in Bengaluru. This strategic investment aims to propel Dairy Day’s expansion across India while providing Motilal Oswal Private Equity and other angel investors with a complete exit from the company.

The collaboration between Kedaara Capital and Dairy Day signifies a pivotal moment for the renowned ice cream brand, as it gears up for an accelerated growth trajectory in the Indian market. With a shared vision for excellence and innovation, both entities are poised to elevate Dairy Day into one of India’s most beloved ice cream brands.

MN Jaganath, Managing Director and CEO, along with A Balaraju, Director–Technical, expressed their enthusiasm about the partnership, stating, “We are delighted to welcome Kedaara as our valued partner for the next phase of our growth. Given the convergence of values and aspirations, we are confident Kedaara will help us deliver on our vision to make Dairy Day one of India’s most loved ice-cream brands. Their wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth.”

The investment not only signifies financial support but also strategic collaboration. Kedaara Capital intends to work closely with the promoters and management team of Dairy Day to drive innovation, enhance operational efficiency, and expand the brand’s footprint across the country.

Founded in 2002 by MN Jaganath, A Balaraju, and their dedicated team, Dairy Day has established a strong presence across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, serving customers through 50,000 retailers. Offering a diverse range of products in various flavors and formats, including cups, candies, sticks, cones, tubs, and cakes, Dairy Day caters to both traditional and online channels.

“Ice cream is one of the fastest growing categories within the entire food and beverage segment. Dairy Day’s dedication to quality and its commitment to delivering ‘goodness’ has resonated deeply with consumers across its target markets, propelling the brand to a market-leading position,” remarked Sunish Sharma, Founder and Managing Partner, and Anant Gupta, Managing Director, of Kedaara Capital.

With Kedaara Capital’s extensive experience and Dairy Day’s proven track record, the partnership is poised to drive innovation, enhance customer experience, and solidify Dairy Day’s position as a frontrunner in India’s thriving ice cream market.

The investment transaction was facilitated by EY, acting as an exclusive investment banker, further underscoring the strategic significance of the collaboration.

Kedaara Capital, a leading private equity firm in India, manages over $3.7 billion in businesses spanning consumer, financial services, pharma/healthcare, technology/business services, and industrial verticals, offering advisory and investment services across various sectors.

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