Akshayakalpa Organic, a farm-to-home organic dairy company, is in the advanced stages of raising Rs 350 crore (around $40 million) in a fresh round led by ABC Impact, an impact investing firm backed by Temasek, people familiar with the developments told Moneycontrol. Infosys founder Narayana Murthy's family office, Catamaran Ventures, is also in talks to invest in the company, they added.
The company’s existing investors, A91 Partners, Nithin Kamath’s Rainmatter Foundation and British International Investment (BII), will also participate in the round to retain their stake in the company.
“A majority of the Rs 350 crore will be in the form of primary capital and the remaining amount will be in the form of secondary share sales,” one of the persons cited above said.
Akshayakalpa, ABC Impact, Catamaran Ventures, A91 Partners and Rainmatter Foundation did not respond to Moneycontrol’s email requesting details.
How much is Akshayakalpa raising? And what will the money be used for?
Of the total Rs 350 crore fundraise, around Rs 200 crore will be in the form of primary capital. Akshayakalpa will use the funds to expand to other cities and double down on its offerings, especially the high protein category and ragi-based snacks as more and more consumers move to healthier food options.
The company is currently present in Bengaluru, Chennai and Hyderabad and is setting up operations in Mumbai and Pune to grow its customer base, per sources.
At the same time, Akshayakalpa also plans to expand its product portfolio, which currently includes organic milk, curd, cheese, butter, ghee, buttermilk and other related dairy products, to add more value-added products to grow its stock keeping units (SKUs).
Who is selling shares in Akshayakalpa?
Apart from the Rs 200 crore in primary capital, Akshayakalpa shares worth around Rs 150 crore will also change hands, as per sources.
“Venture Dairy is selling its entire stake in the company to make way for incoming investors,” a second source said.
Venture Dairy is a US and UK-based investor with specialised focus on dairy companies.
Venture Dairy did not reply to Moneycontrol’s queries.
Increased investor interest:
The increased investor interest in Akshayakalpa comes at a time when the company has grown at a rapid pace. From revenues of around Rs 100 crore about three years ago, the company is now aiming to end FY26 with revenues of Rs 550 crore.
In fact, its valuation is also set to jump nearly 3X from Rs 590 crore three years ago to Rs 1,500 crore now, as per sources, as it grows in scale.
It currently serves more than 3 lakh individual customers in Bengaluru, Chennai, and Hyderabad through its direct deliveries, quick commerce and retail stores.
Who does Akshayakalpa compete with?
The company, founded by Shashi Kumar, formerly a software engineer and coder at IT major Wipro, competes with Premji-backed iD Fresh Food, IPO-bound Milky Mist, Temasek-backed Country Delight and others.
Kumar worked at Wipro for around 12 years before starting Akshayakalpa in 2010.
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