Kedaara Capital Injects $150 Million into Dairy Day
Source: The DairyNews
In a significant move signaling the dynamic growth of the ice cream industry, Kedaara Capital has made a substantial investment of $150 million in Dairy Classic Ice Creams Pvt Ltd (commonly known as Dairy Day), marking its debut venture into this segment, the private equity firm announced on Thursday.
While the exact figures of the deal remain undisclosed, sources familiar with the matter suggest it to be one of the largest private equity deals within the ice cream sector.
This strategic investment by Kedaara Capital follows closely on the heels of a $20-million follow-up investment by venture capital firm Jungle Ventures in Walco Food, a company housing renowned ice cream brands such as NIC and Grameen Kulfi.
"Ice cream stands out as one of the fastest-growing categories within the entire food and beverage segment," remarked Sunish Sharma, Managing Partner at Kedaara. The transaction was facilitated by EY, acting as the exclusive investment banker.
The infusion of capital by Kedaara Capital is poised to fortify Dairy Day's vision while facilitating a complete exit for existing investors such as Motilal Oswal Private Equity and other angel investors. Kedaara Capital has expressed its commitment to working closely with Dairy Day's promoters, MN Jaganath and A Balaraju, as well as the company's management team.
MN Jaganath, Managing Director of Dairy Day, expressed confidence in the partnership, stating, "[Kedaara's] wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth. We are confident of setting up world-class production facilities in various locations in the coming years."
Established in 2002 and headquartered in Bengaluru, Dairy Day boasts a robust network of over 50,000 retailers across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra. With revenue surging at a compound annual growth rate (CAGR) of 30% over the past decade, the company aims to elevate its production capacity from 2 lakh liters per day to 3.5 lakh liters per day. Dairy Day offers a diverse range of products, including candies, sorbet, cones, and tubs, distributed across general trade, modern trade, and online channels.
This strategic investment by Kedaara Capital follows closely on the heels of a $20-million follow-up investment by venture capital firm Jungle Ventures in Walco Food, a company housing renowned ice cream brands such as NIC and Grameen Kulfi.
"Ice cream stands out as one of the fastest-growing categories within the entire food and beverage segment," remarked Sunish Sharma, Managing Partner at Kedaara. The transaction was facilitated by EY, acting as the exclusive investment banker.
The infusion of capital by Kedaara Capital is poised to fortify Dairy Day's vision while facilitating a complete exit for existing investors such as Motilal Oswal Private Equity and other angel investors. Kedaara Capital has expressed its commitment to working closely with Dairy Day's promoters, MN Jaganath and A Balaraju, as well as the company's management team.
MN Jaganath, Managing Director of Dairy Day, expressed confidence in the partnership, stating, "[Kedaara's] wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth. We are confident of setting up world-class production facilities in various locations in the coming years."
Established in 2002 and headquartered in Bengaluru, Dairy Day boasts a robust network of over 50,000 retailers across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra. With revenue surging at a compound annual growth rate (CAGR) of 30% over the past decade, the company aims to elevate its production capacity from 2 lakh liters per day to 3.5 lakh liters per day. Dairy Day offers a diverse range of products, including candies, sorbet, cones, and tubs, distributed across general trade, modern trade, and online channels.
