D2C dairy startup Country Delight raises Rs 200 crore from Alteria Capital

Bengaluru: Direct-to-consumer food essentials startup Country Delight has raised funding $The company secured 2 billion rupees ($25 million) in venture debt from Alteria Capital to fund its expansion, capability building and brand marketing efforts, the company said in a statement on Thursday.

Chakradhar Gade, co-founder of the company, said: “At Country Delight, we have always focused on solving a very fundamental problem of Indian consumers, which is to provide fresh, pure milk to customers in a hassle-free manner and then expand to other Necessities.” said.

“As we scale our business and prepare for our IPO journey, it is important for us to leverage various sources of capital to improve financial efficiency and prepare for the next phase of growth.”

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In fiscal 2024, Country Delight’s revenue was $1,380 crore, an increase of 46% over the same period last year, according to ARC’s report. The growth was mainly driven by rising subscriber numbers and increased sales of non-dairy products such as fruits, vegetables, eggs and legumes, the report added. Country Delight has not yet submitted the results of its audit.

The company’s growth has also been driven by a strong distribution network with high-quality products that are easy to get involved with and predictable door-to-door delivery. It aims to further strengthen its supply chain capabilities and expand into different regions of India.

Founded in 2015 by Gade and Nitin Kaushal, Country Delight specializes in the dairy and fresh produce categories and has private label products. The startup currently serves nearly 1.5 million users across 15 cities in India. It operates on a daily subscription model and provides customers with fresh milk and buffalo milk, curd, ghee, paneer, bread, eggs, etc.

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Over the years, the startup has raised about $200 million in 18 rounds of funding, valuing it at just over $800 million, according to Tracxn. Matrix Partners and Temasek are investors in the company.

Meanwhile, this is Alteria’s third investment in the startup this year. In August, Country Delight raises funds $Venture debt provider racks up debt of Rs 70 crore $According to an Entrackr report, it raised Rs 76 crore in May. Earlier this year, the company raised $20 million in a Series E round from new and existing investors, providing a massive secondary exit for one of its early investors.

“As the business expands, it is necessary to invest in capability building in different areas to improve business efficiency. We are investing further in Country Delight as the company is well-positioned to leverage its strong operating base and access capital,” said Alteria Co-Founder and Management Partner Vinod Murali said in a statement on Thursday: “The market is on a path towards an eventual listing. ”

Typically, startups take on venture debt to fund their expansion plans before their next round of funding. Venture debt also allows startups to increase their cash runway and supplement equity financing, but with significantly less dilution involved.

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Alteria is one of the largest debt providers, with approx. $The three funds total Rs 4,400 crore. It has invested in over 200 Indian startups, including Rebel Foods, Spinny, Ola Electric, Good Glamm Group, Infra.market, BharatPe, Cars24, Ather, Niyo and Bluestone.