Country Delight Nets $25M in Series E Funding from Temasek’s Arm
Country Delight, a prominent dairy tech soonicorn based in Gurugram, India, has secured approximately $25 million (INR 212.50 crore) in its latest funding round, according to reliable industry sources. This investment, identified as part of its Series E funding, has been spearheaded by V-Sciences Investments Pte Ltd, a subsidiary of Singapore’s sovereign wealth fund Temasek, signaling strong confidence in the company’s trajectory within the rapidly evolving dairy sector.
A Strategic Boost
This infusion of capital from Temasek’s subsidiary underscores Country Delight’s rising prominence in India’s dairy market. Known for its innovative farm-to-table model, the company sources premium milk and dairy products directly from farmers, bypassing traditional intermediaries, and delivers them to consumers via a sophisticated, tech-driven distribution network. This latest investment reflects Temasek’s belief in Country Delight’s ability to scale its operations and cement its leadership in the direct-to-consumer dairy space.
A Robust Funding History
Country Delight’s journey through the funding landscape has been marked by significant milestones. Prior to this round, the company raised $20 million in a Series E tranche in January 2024, led by Temasek alongside Seviora Capital and Venturi Partners. This followed a substantial $108 million Series D round in May 2022, which saw participation from new investors like Venturi Partners and Temasek, as well as existing backers such as Elevation Capital, Matrix Partners India, and Orios Venture Partners. Earlier rounds include a $25 million Series C in November 2020, led by Elevation Capital, and a $7.5 million Series B in 2019 from Matrix Partners. Since its inception in 2013 by founders Chakradhar Gade and Nitin Kaushal, Country Delight has cumulatively raised over $248 million in equity and debt, per available data, positioning it tantalizingly close to unicorn status with a valuation hovering around $820 million.
Other Key Investors
Beyond Temasek, Country Delight has attracted a diverse pool of influential investors. Orios Venture Partners holds the largest external stake at approximately 21.35%, followed by Matrix Partners with 16.59% and Elevation Capital with 9.38%. In February 2024, Orios made a partial exit, selling a 3% stake to Temasek-backed Seviora Capital for around $27 million (INR 225 crore), underscoring the high returns potential in the company. Additional investors like IIFL Asset Management, SWC Global, and Trifecta Capital have also contributed to its growth, enhancing its financial backbone as it scales.
Fueling Growth and Innovation
With this fresh $25 million, Country Delight is well-equipped to turbocharge its ambitious expansion plans. The company intends to broaden its product portfolio beyond milk to include bakery goods, poultry, and fresh produce, all while exploring sustainable packaging solutions to align with growing consumer demand for eco-friendly options. Strengthening its market presence across more than 25 cities—including Delhi NCR, Bengaluru, and Chandigarh—where it already serves 1.5 million customers, remains a key priority. The funding also supports its preparations for a potential initial public offering (IPO), a move that could further solidify its standing in the competitive dairy tech arena.
Capitalizing on a Booming Market
India’s dairy industry is on an upward trajectory, fueled by rising disposable incomes, urbanization, and a growing appetite for high-quality, traceable dairy products. Valued at over $6 billion for savory snacks alone (as a proxy for broader food trends), the market presents a fertile ground for innovation. Country Delight’s direct-sourcing model and emphasis on freshness position it uniquely to capture this opportunity, distinguishing it from competitors like Sid’s Farm, Akshayakalpa Organic, and Milk Mantra, which have also secured significant funding in recent years. For instance, Sid’s Farm raised $10 million in Series A funding in June 2024, while Akshayakalpa Organic netted $12 million in January 2024.
Nuances and Future Outlook
This Series E round, notably at a flat valuation of $820 million, suggests a cautious yet optimistic approach amid a global funding slowdown. While Country Delight reported a robust revenue of INR 1,380 crore in FY24—a 50% jump from INR 917 crore in FY23—its losses of INR 260 crore in FY23 highlight the capital-intensive nature of its growth strategy. Temasek’s increased stake to 13.63%, making it the largest external shareholder, reflects a long-term bet on India’s consumption story, a theme echoed in its recent $1 billion investment in Haldiram’s and $210 million in Rebel Foods. As Country Delight navigates this pivotal phase, balancing profitability with expansion will be critical to unlocking its full potential in a market ripe with promise.
