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

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Three points you will get to know in this article:

  1. Akshayakalpa Organic raises Rs 100 crore in Series C funding led by A91 Partners.
  2. Company approves 41,35,010 Series C CCPS at Rs 241.84 each.
  3. ESOP pool expansion and talks for an extra $25 million highlight Akshayakalpa’s growth in the organic dairy sector.

Akshayakalpa Organic, an organic dairy startup, has successfully secured Rs 100 crore or $12 million in its Series C funding round, which was led by A91 Partners. This significant investment marks a milestone for the Bengaluru-based company, coming after a gap of 16 months.

Special Resolution and Capital Raise

Furthermore, the board of Akshayakalpa Organic has taken a decisive step by passing a special resolution. This resolution entails the issuance of 41,35,010 Series C CCPS at an issue price of Rs 241.84 each, aimed at raising the targeted Rs 100 crore or $12 million. This information has been extracted from the company’s regulatory filings, obtained from the Registrar of Companies (RoC).

In the recent financing round, A91 Partners took the lead by contributing Rs 64.8 crore, while existing investors Rainmatter Capital and British International Investment, the UK’s development financial division, added Rs 18.6 crore and Rs 16.6 crore respectively to the funding.

Special Resolution and Capital Raise

Established by GNS Reddy and Shashi Kumar, Akshayakalpa boasts of supplying organic milk and associated products to over 60,000 consumers daily in Bengaluru, Hyderabad, and Chennai through its direct delivery platform. Its range of products is accessible through 2,000 retail outlets as well as major e-commerce and quick commerce platforms.

The valuation of Akshayakalpa Organic, stands at approximately Rs 590 crore or $72 million following the allocation of resources. It’s important to note that this round may be a component of a larger fundraising effort, and the ownership structure may undergo changes by the end of Series C.

In addition to the aforementioned development, the company has enacted a distinct resolution to amplify the magnitude of the Employee Stock Ownership Plan (ESOP) pool by introducing new options worth Rs 5 crore. According to estimates by TheKredible, the cumulative value of Akshayakalpa Organic’s ESOP pool, including the fresh options, reaches Rs 22.6 crore or $2.75 million.

Akshayakalpa Organic is said to be in discussions to secure a substantial $25 million in its Series C funding round. Notably, in September 2022, the company successfully secured $15 million in investment through a Series B round, with notable contributions coming from British International Investment, Rainmatter Foundation, and other key players in the industry. Furthermore, its prominent competitor and front-runner in the direct-to-consumer dairy sector, Country Delight, recently garnered $20 million in funding from a mix of new and existing investors.

Financial Performance and Market Trends

Remarkably, during the previous fiscal year ending in March 2023, Akshayakalpa Organic saw a remarkable 66% increase in revenue from operations, soaring to Rs 191 crore from Rs 115 crore in FY22. However, it also experienced an 89% rise in losses, totaling 36 crore in FY23. These developments highlight the substantial growth and challenges being navigated within the organic dairy industry, signaling a dynamic and competitive landscape.

Akshayakalpa Organic, an organic dairy startup, recently secured Rs 100 crore in its Series C funding, led by A91 Partners, after a 16-month gap. The board passed a resolution to issue 41,35,010 Series C CCPS at an issue price of Rs 241.84 each. The company, founded by GNS Reddy and Shashi Kumar, supplies organic milk to over 60,000 consumers daily and is expanding through retail outlets. This funding, part of a larger effort, raises its valuation to approximately Rs 590 crore. Additionally, the company plans to enhance its ESOP pool by introducing new options worth Rs 5 crore, while also aiming to secure an additional $25 million in Series C funding.

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