Omnivore fund invests USD 2.2 million in bangalore-based dairy service delivery company, Doodhwala
Type: Seed round
Fund Manager: Omnivore Fund
Date Launched: February 2018
Sector Focus: AgTech, Dairy
Region Focus: South and Southeast Asia, India
Total Deal Size: USD 2.2 million
One of the first investments from Omnivore’s second fund, the USD 2.2 million investment will allow Doodhwala to scale their operations and improve their business model.
Doodhwala buys small batches of milk each day directly from farms near India’s sprawling cities and makes household deliveries itself. The arrangement offers farmers the security of a reliable and fair buyer and bypasses the chain of middlemen charging for transport and other services. Doodhwala makes 400,000 deliveries per month in Bangalore and Pune.
Why This Deal Matters
Without a buyer like Doodhwala, farmers sell their milk directly to nearby customers and local vendors. Those vendors, who aggregate supply from farmers and then sell it on for distribution, represent one link in India’s complex, informal dairy value chain. By the time milk reaches the customer, it costs far more than what the farmer got paid for it.
With Doodhwala, farmers no longer have to sell 100% of their supply to middlemen in order to get market access. Instead, farmers can sell 30-40% of their supply to Doodhwala to cut the middle-men and ensure sustainable income, predictable demand, and thus a more viable business model.
Key Stakeholders Involved
Omnivore Fund: Co-founded by Mark Khan and Jinesh Shah, Omnivore invests in start-ups from India developing breakthrough technologies for food, agriculture, and the rural economy. Omnivore’s first fund, totaling USD 39 million, was launched in April 2012 and has invested in twelve active portfolio companies working across India. Their second fund – backed by KfW, the Dutch Good Growth Fund, the Rockefeller and Sorenson Impact foundations, Ceniarth, RBL Bank, and SIDBI – raised USD 46 million.
Doodhwala: Co-founded by Aakash Agrawal and Ebrahim Akbari, this Bangalore-based start-upis a subscription-based, hyper-local, early morning delivery platform for perishables and daily essentials. Sourcing directly from local farms and dairies, Doodhwala helps eliminate the middle-man and increase profit for farmers by connecting them to a more affordable delivery service model.