The growing demand for preservative-free and traceable dairy products, coupled with the adoption of quick commerce and direct-to-consumer (D2C) models, is fuelling the rise of new-age dairy brands. These startups are not only expanding rapidly but also attracting significant investor interest.
In the past year alone, around nine dairy startups raised funding, with 5-6 brands such as Doodhvale Farms and Cremeitalia securing investments in the last six months. Doodhvale, for instance, saw an 80% revenue jump to Rs 27 crore in FY24 from Rs 15 crore in FY23 and raised $3 million led by Atomic Capital.
The new dairy ecosystem is evolving with brands such as Sid Farms, Moowing, Whyte Farms, Provilac, and Humpty Farms leveraging tech-driven supply chains and bypassing traditional retail.“Quick commerce platforms have helped premium dairy brands reach customers without needing in-house logistics,” said Reihem Roy, partner at Omnivore. These platforms contribute 10%-20% of sales for several startups and are growing at 4%-8% year-on-year.
Sid Farms’ chief growth officer Tamal Chatterjee said that marketplaces now account for about 35% of the company’s business. “Over FY24, we launched our ghee and long shelf-life buffalo milk in over 60 cities,” he said, with expectations of 36% growth in FY25.
As brands scale, many shift to a D2C-first approach, relying on their own websites and apps, often through subscription models. This allows for improved margins, brand control, and stronger consumer relationships. Early movers like Country Delight and Akshayakalpa exemplify this. Country Delight, which has raised $196 million so far, posted a 46% growth to Rs 1,380 crore in FY24. Akshayakalpa is expected to reach Rs 300-350 crore by the end of FY24, backed by $38.8 million in total funding.
Despite comprising under 5% of the organised dairy market, dominated by legacy players such as Amul and Mother Dairy, experts believe premium and specialty brands could capture 10%-15% share in the next decade, propelled by urbanisation, health consciousness, and rising disposable incomes.
Consumers are increasingly prioritising transparency and quality. Brands are integrating technological solutions like QR codes to offer real-time milk quality data and farm traceability. “Educating consumers is key,” Chatterjee said. A 2021 Nielsen survey found that 63% of consumers were willing to pay more for clean-label food products.
Supporting this ecosystem, companies such as mooMark are emerging as B2B enablers, offering private label solutions to D2C and FMCG brands. Backed by Stellapps Technologies, which raised $26 million in October 2024, mooMark expanded its client base to 100 in FY25.