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

Bengaluru: Direct-to-consumer food essentials startup Country Delight has raised ₹200 crore (about $25 million) in venture debt from Alteria Capital to fund its expansion, capacity building, and brand marketing efforts, the company said in a statement on Thursday. 

“At Country Delight, we have always been focused on solving a very fundamental problem for Indian consumers which is to provide fresh, unadulterated milk to customers in a hassle free manner which then expanded to other essential items,” the company’s co-founder Chakradhar Gade said. 

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

Also read: Trifecta launches its largest-ever venture debt fund at ₹2,000 crore

In FY24, Country Delight posted a revenue of ₹1380 crore, a 46% increase from a year earlier, according to a report by the ARC. The report added the growth was driven mainly by increase in subscribers and sales of non-dairy products such as fruits, vegetables, eggs, and pulses. Country Delight is yet to file its audited results. 

The company’s growth has also been fuelled through high quality produce with ease of engagement and a robust distribution network for predictable home deliveries. It aims to further strengthen its supply chain capabilities and expand across different parts of India. 

Founded in 2015 by Gade and Nitin Kaushal, Country Delight operates in the milk products and fresh produce category with its own branded offering. The startup currently serves nearly 1.5 million users across 15 cities in India. It operates under a daily subscription model serving its customers fresh cow & buffalo milk, curd, ghee, paneer, bread, and eggs among others. 

Also read: No startup’s too small to IPO in a bull market

Over the years, the startup has raised about $200 million across 18 rounds and is valued at a little over $800 million, as per Tracxn data. It counts Matrix Partners and Temasek among its investors. 

Meanwhile, this is Alteria’s third investment into the startup this year. In August, Country Delight raised ₹70 crore in debt from the venture debt provider after a ₹76 crore round in May, as per an Entrackr report. Earlier this year, it raised $20 million in its series E round from new and existing investors, which gave a large secondary exit to one of its earlier investors. 

“As the business expands, it is necessary to invest in capacity building across different pockets to improve efficiency in the business.. We are investing further in Country Delight, since the company is very well placed to capitalise on its strong operating foundation and access capital markets on a path to eventual listing,” Alteria’s co-founder and managing partner Vinod Murali said in the statement on Thursday. 

Typically, startups take on venture debt to fund their expansion plans before their next funding round. Venture debt also enables startups to increase the cash runway and complements equity financing but involves significantly less dilution.

Also read: Startup IPOs: Investors rush for exits as new capital takes a backseat

Alteria is one of the largest debt providers with a corpus of about ₹4400 crore across three funds. 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.