SUMMARY
A clean-label F&B brand, providing dairy and breakfast essentials made from fresh and organic ingredients
The Origin Story
During a reunion at IIT-Roorkee, former batchmates Vishal Rastogi and Vikas Singh discussed how the farm-to-fork concept could help prevent rampant milk adulteration. As dairy is a key component of breakfast essentials, health-conscious consumers look for pure and preservative-free organic products as part of their nutrition regime. What started as Doozy Farms in February 2016 underwent several changes, including clubbing of business operations, and a pan-India D2C brand called Happy Nature (DHN Agritech) was set up in March 2022.
The Differentiator
Initially, the IITians operated as a tech-enabled dairy company bringing fresh, safe (antibiotics-free) and adulteration-free milk to people’s doorsteps. However, they were aware of spurious dairy products sold in the market and decided to cover the entire range. Happy Nature is a clean-label (100% chemical-free) F&B brand, providing dairy and breakfast essentials made from fresh and organic ingredients. Its tamper-proof packaging and last-mile delivery further ensure food quality and safety.
The brand runs dairy farms in Punjab and Haryana and works exclusively with more than 40 farmers. Most of its dairy products (A2 desi cow milk, bilona ghee homestyle paneer and dahi/yoghurt) are processed/made in two in-house production units (Rajpura in Punjab and Jhajjar in Haryana). For the rest of its product line, it works closely with entrepreneurs, FPOs and companies with organic certifications. Happy Nature claims that it retains the IP rights of all its unique food products.
The Growth
Happy Nature added new products to its range of breakfast essentials, including millet, protein and probiotic ranges. It grew its consumer base, added new cities to its delivery list (currently, a total of 12) and brought in products with high gross margins to achieve breakeven. The brand claims it turned EBITDA positive in FY23 with 55% YoY revenue growth. Around 95% of its revenue comes from its website and mobile app sales, but it also sells on Amazon, Flipkart and other ecommerce marketplaces.
What’s Next
In the short term, the brand eyes a minimum MoM revenue growth rate of 10% while keeping the cash burn low. It also targets an overall growth of 50% or more by adding new cities (Jaipur, Indore and Bhopal) and expanding its customer base across the existing ones. It will further focus on ecommerce growth by leveraging ONDC and establishing a pan-India presence. By FY25, Happy Nature aims to close its ongoing funding deal (debt+equity) and hit the INR 100 Cr+ revenue mark.
