Milk Mantra Posts INR 12.3 Cr Loss In FY23 As Sales Remain Flat

Bhubaneswar-based dairy tech startup Milk Mantra slipped into the red in the financial year ended March 31, 2023 after posting profits in two consecutive years. The Eight Road Ventures-backed startup reported a net loss of INR 12.3 Cr in FY23 compared to a net profit of INR 13.6 Cr in FY22 as its operating revenue remained flat.

Milk Mantra was founded in 2009 by Srikumar Misra and Rashima Misra but began operations in 2012. The startup sells products under two brands – Milky Moo and Moo Shake. It sells packaged milk, curd, paneer, lassi, mishti dahi, and flavoured milkshakes. 

Its operating revenue rose a marginal 2% to INR 272.9 Cr in FY23 from INR 267.1 Cr in the previous fiscal year, indicating that the company is facing difficulties in scaling up its business. Here is how it generated revenue during the year under review:

• Pasteurised Milk: Milk Mantra earned the highest amount of revenue by selling pasteurised milk. However, revenue from sales of milk dipped 4.6% to INR 162.5 Cr in FY23 from INR 170.5 Cr in the previous fiscal year.
• Curd: Curd sales saw a slight increase to INR 59.5 Cr during the year under review from INR 53 Cr in the previous fiscal year
• Cottage Cheese & Lassi: Milk Mantra earned INR 33 Cr from this, an increase of 17% from INR 28.2 Cr in FY22.
  

Including other income, the startup’s total income rose 2.2% to INR 277.1 Cr in FY23 from INR 271.1 Cr in the previous fiscal year. 

Where Did Milk Mantra Spend? 

The startup’s overall expenditure jumped 13% to INR 289.4 Cr in FY23 from INR 256.6 Cr in the previous fiscal year.

Procurement Cost The Biggest Expense: Milk Mantra spent the biggest amount, INR 220.8 Cr, on procurement in FY23. This was an increase of 14% from INR 193.8 Cr in FY22.

Transportation Cost Jumps: The startup spent INR 14.9 Cr on transportation of its products in FY23, a jump of 16% from INR 12.9 Cr in the previous fiscal year. It needs to be highlighted that special arrangements need to be made for transporting dairy products as they are perishable, and this adds to the cost.

Employee Benefit Expenses Flat: Milk Manta’s employee costs were unchanged at INR 18.6 Cr in FY23. Employee benefit expenses include salaries, provident fund, gratuity payments, among others.

Milk Mantra has dairy processing plants in Gop, Konark, Hatibari, and Sambalpur in Odisha. The startup has rolled out bulk milk coolers in villages in Odisha and claims to source milk from over 75K dairy farmers in Odisha and neighbouring states under its “Ethical Milk Sourcing Programme”. 

Backed by the likes of Eight Roads Venture, US International Development Finance Corp, and Aavishkar Venture Capital, Milk Mantra has raised a total funding of $39 Mn till date. It competes with startups like Country Delight, Stellapps, Happy Milk, and dairy giants like Amul and Mother Dairy.