Country Delight Nets INR 70 Cr Debt from Alteria Capital

Dairy product startup Country Delight has secured INR 70 Cr  ($ 8.35 Mn) in debt funding from Alteria Capital.

The fresh capital injection comes as the startup reports strong revenue growth and aims for profitability in the near future.

According to regulatory filings, Country Delight’s board has approved the issuance of 7,000 non-convertible debentures (NCDs) at INR 1,00,000 each to raise the funds. 

This debt infusion follows a INR 76 Cr mixed debt and equity round from Alteria Capital in May, solidifying the investor’s continued confidence in the startup’s growth trajectory.

The latest funding comes amid Country Delight’s robust financial performance. Inc42 recently reported that the startup achieved an operating revenue of INR 650 Cr in the first half of FY24. 

This puts Country Delight on track to surpass its FY23 revenue of INR 900 Cr, which itself represented a 66% year-on-year growth from FY22.

Interestingly, Country Delight is eyeing profitability in the near term. Sources indicate that the startup expects to reach EBITDA breakeven by the end of H1 2025. 

This aligns with earlier statements from cofounder Chakradhar Gade, who said in September 2023 that the company would turn profitable within 8-10 months.

Founded in 2013 by Gade and Nitin Kaushal, Country Delight operates on a subscription-based model, delivering milk and other daily essentials directly from farmers to consumers. 

The startup has expanded its operations to about 15 cities, including Delhi NCR, Mumbai, Bengaluru, Jaipur, Chennai, and Pune.

Country Delight’s growth story has attracted significant investor interest. Earlier this year, the startup raised $20 million as part of its Series E round, which valued the company at approximately $758 million. 

The round saw participation from existing investors Temasek and Venturi Partners.

In a separate development, Orios Venture Partners made a partial exit from Country Delight in February, scoring a 45X return on its initial investment. 

The early-stage VC firm sold a 3% stake to Temasek for around INR 225 Cr, while still retaining the majority of its stake from Fund I in the company.

It faces competition from companies like Akshayakalpa, Milk Mantra, Sid’s Farm, and Otipy, among others.

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