Can a new Indian revolution be sparked by the 7,000 crore Country Delight?
Started in 2015, Country Delight aims to disrupt the milk distribution in India. Their mission is to deliver fresh, unadulterated milk directly to consumers’ homes through an innovative mobile app. With a streamlined ordering process, they aim to provide farm-to-home deliveries within 24-36 hours, facilitated by a fully integrated supply chain.
Country Delight sources directly from dairy farms and operates in 15 cities, including Delhi-NCR, Mumbai, Bengaluru, Chennai, Jaipur, and Pune.The India Dairy Market size is estimated at $26.11 bn in 2024, and is expected to reach $35.96 bn by 2029, growing at a CAGR of 6.61% during the forecast period (2024-2029).
In FY22, the company recorded operating revenue of Rs 564 Cr with a net loss of Rs 186 Cr, six times higher than the previous fiscal. Sales of fresh milk, constituting 67.8% of total revenue, grew by 46% to Rs 368 Cr. Additionally, sales of groceries and other dairy products increased 2.5 times to Rs 175 Cr.
Country Delight recently raised $20 mn in February 2024 at a valuation of around $820 mn. The company had last raised $108 million back in May 2022 at a valuation of $615 million.
The company operates on a subscription-based model where customers choose their preferred plan for regular or alternate-day deliveries. This streamlines milk management for customers, with daily service provided by the company. Ethical practices are ensured in milk procurement, with farmers receiving a premium for their production. By eliminating middlemen, the brand improves farmers’ working capital and pays them promptly. Currently serving over 300,000 households and fulfilling 50,00,000 orders monthly, facilitated by a team of 6,000 delivery personnel.
In the market organized players struggle with long delivery times and often resort to using milk powder, compromising freshness and naturalness. On the other hand, unorganized vendors offer quicker delivery but lack transparency regarding milk purity. Country Delight seized this opportunity by prioritizing purity and education. They aimed to educate consumers about the importance of pure, unadulterated dairy, bridging the gap in the market.
Country Delight “Live Better” digital campaign targets a shift towards farm-fresh products, reaching over 5 mn viewes on digital platforms. By highlighting the importance of healthy living standards, the campaign seeks to instigate a change in consumer behavior. Leveraging customer-focused and tech-driven strategies, the brand delivers fresh, minimally processed food items directly to households, tackling industry challenges like adulteration. This approach disrupts traditional delivery businesses and resonates with consumer sentiments. Despite initial challenges, Country Delight’s partnerships with celebrities, influencers, nutritionists, and chefs have cemented its relevance and trustworthiness.
While Mother Dairy and Amul hold significant presence in the market, Country Delight sets itself apart through its commitment to quality, emphasis on naturalness, and innovative marketing strategies. In the groceries segment, it competes directly with Blinkit, BigBasket, Zepto, and Otipy.
Country Delight is consistently evolving, focusing on new product launches and assessing categories. Currently, around 40% of its revenue comes from non-milk products, with plans to increase this to 60-70% in the coming years by expanding its customer base. The company aims to achieve a 10-15% market share in North India within the next three years.
Country Delight has positioned itself as a reliable and convenient product delivery service nationwide. Emphasizing quality and customer satisfaction has helped it build a loyal customer following. The company remains committed to expanding its reach to meet the increasing demand for dairy products across all demographics. However, it would be interesting to see how they would be balancing financial sustainability.
Reference: Economictimes | nicodigital | entrackr | mordorintelligence
Startup Funding Summary
Shadowfax, Bangalore-based logistics startup, has raised $100 Mn in Series E funding from TPG NewQuest, Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm and Trifecta Capital – Read More
Newspace Research & Tech, Bangalore-based drone manufacturer, has raised $52 Mn in a funding from Marquee Investors, SBI’s startup hub and SIDBI – Read More
SBL Energy, Raipur-based mining & industrial explosives manufacturer, has raised $39 Mn in a funding from Synergy Capital, India SME Investments and other HNIs – Read More
Kushals Fashion Jewellery, Bangalore-based jewellery brand, has raised $34 Mn in Series B funding from Lighthouse India IV AIF – Read More
Zeno Health, Mumbai-based healthtech startup, has raised $25 Mn in Series C funding from STIC Investments and Lightbox – Read More
M&A Snippets
Mumbai-based hospitality company Chalet Hotels has acquired Faridabad-based hospitality group Courtyard by Marriott Aravali Resort for $38 Mn – Read More
Bangalore-based seafood firm Captain Fresh has acquired US-based seafood importer and distributor CenSea Inc for an undisclosed amount – Read More
Leave a Comment