Milky Mist In Talks To Raise $120m In Its First Institutional Funding Round
Milky Mist Dairy Food is in talks with several private equity funds to raise $100-120 million in what would be its first institutional funding.
First reported by ET, citing sources, the startup is in talks with private equity funds such as ChrysCapital, Kedaara, Temasek, Multiples, True North, and TA.
As per one of the sources, the final binding bids are expected to be in towards the end of the month or early next month, whereas the deal is likely to close next quarter.
Milky Mist Dairy Food | Building Healthy India
Set up by T Sathish Kumar, Milky Mist began with selling milk and has entered value-added products such as flavoured yogurt, butter, milkshakes, cheese variants, and UHT products. The startup has a 55-acre plant in Perundurai, Tamil Nadu, and supplies through a retail network of more than 1,50,000 outlets.
It had previously raised debt from Anicut Capital, a venture debt fund.
Commenting on the development, one of the sources with knowledge of the company’s plans stated,
“The company currently has a strong presence in southern India and with its plans to become a pan-India brand, it needs capital to scale. It will look at raising $100-150 million given the inbound interest and is likely to sell a significant minority stake in an entirely primary round.”
The startup, which has been bootstrapped, has tied up with 60,000 dairy farmers to process 1.5 million litres of milk each day. As per the source, the startup generates annual revenue of Rs 1,300-1,400 crore.
Projected to have a second straight fiscal year of double-digit revenue growth, the dairy sector is set to reach 11-12% revenue growth. This growth is a notch below last fiscal’s 13% growth as projected by Crisil Ratings.
Contact us for new company registration or other startup related legal services.
Follow us and connect with us on Instagram, Facebook, Twitter and LinkedIn.