Delhi-based dairy and daily essentials startup Doodhvale Farms has raised $3 million in a Series A funding round led by Atomic Capital, marking a significant milestone in its growth journey. The funding round also witnessed participation from notable investors including Singularity Early Growth Opportunities Fund, Bharat Founders Fund, Indigram Lab Foundation, and several angel investors.
Founded in 2019 by Sudhir Jain, Aman Jain, Ishu Jain, and Sanjay Jain, Doodhvale Farms is a vertically integrated platform that delivers milk, dairy products, and daily essentials directly from farm to doorstep. The latest funding infusion will be used to expand its offline operations, increase its delivery footprint across more pin codes, and enhance its product portfolio, according to Aman Jain, the company’s Founder and CEO.
Strengthening Offline and Online Presence
With this funding, Doodhvale Farms aims to deepen its presence in the Delhi-NCR region by opening more offline stores and optimizing its app-based subscription model. By extending its distribution network, the startup plans to tap into new customer segments while retaining existing users through efficient operations and superior product quality.
The company competes with established industry players such as Amul, Mother Dairy, and Country Delight, alongside a vast network of unorganized milk suppliers. Doodhvale Farms differentiates itself through its vertically integrated supply chain, which allows complete control over product quality, from cattle feed to delivery.
A Farm-to-Home Model with a Focus on Quality
Doodhvale Farms sources its milk from a single livestock farm rather than relying on village-level collection centers. This approach eliminates the involvement of multiple vendors and reduces the time between production and delivery, ensuring fresher, healthier products for consumers.
“We prioritize quality at every step. Our milk is adulteration-free and antibiotic-free, thanks to the control we maintain over farming practices, cattle feed, and storage conditions,” explained Aman Jain.
This model not only enhances product quality but also provides end-users with the ability to trace their milk back to its source, a feature that distinguishes Doodhvale Farms from competitors.
Expanding Product Portfolio to Meet Local Demands
Doodhvale Farms offers over 100 SKUs, ranging from milk and paneer to bread and traditional Indian sweets like Mathura Peda, Alwar Milk Cake, and Punjabi Doda Barfi. The startup is focusing on creating region-specific products to cater to localized preferences, further strengthening its market position in Delhi-NCR.
The strategy aligns with the company’s belief that the dairy market is not a “winner-takes-all” space. Instead, brands that deliver seamless customer experiences and prioritize quality are expected to succeed.
Profitable Growth in a Competitive Market
Despite challenges in the dairy startup ecosystem, including heavy consolidation and competition from legacy players, Doodhvale Farms has managed to remain EBITDA-positive for the past three years. This profitability underscores the efficiency of its operations and the strong demand for its high-quality offerings.
According to Apoorva Gautam, Founder and Managing Partner at Atomic Capital, the key to Doodhvale Farms’ success lies in its ability to efficiently acquire and retain customers while maintaining operational excellence. “Milk, being a perishable product, requires seamless logistics and superior quality control, and Doodhvale Farms is well-positioned to meet these demands,” Gautam noted.
The Evolving Dairy Startup Ecosystem
The Indian dairy startup ecosystem has seen significant activity in recent years. Companies like Milkbasket and Daily Ninja have been acquired by larger players such as JioMart and BigBasket, respectively. Meanwhile, some startups, like Doodhwala, have struggled to sustain operations.
Amidst this landscape, Doodhvale Farms has managed to carve out a niche by focusing on quality, traceability, and customer-centric operations. However, the competition remains fierce. Just last month, competitor Country Delight secured Rs 200 crore in debt financing from Alteria Capital to expand its brand presence and scale capacity.
Future Plans and Market Outlook
The $3 million funding is a stepping stone for Doodhvale Farms as it scales its operations and deepens its market presence. With a growing focus on offline expansion and localized product offerings, the company is set to capitalize on the increasing demand for premium and traceable dairy products in urban markets.
As the dairy startup ecosystem evolves, Doodhvale Farms’ vertically integrated model and focus on quality could serve as a blueprint for sustainable growth. The company’s ability to adapt to changing market dynamics, expand its footprint, and innovate its product offerings will be critical to its long-term success.
Conclusion
Doodhvale Farms’ recent funding round underscores the growing investor confidence in India’s dairy startup ecosystem. By leveraging its unique farm-to-home model, the company is poised to disrupt the traditional dairy supply chain and meet the rising demand for high-quality, traceable dairy products.
As it continues to expand its operations and innovate its offerings, Doodhvale Farms is set to play a pivotal role in shaping the future of India’s dairy market.
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