Kedaara Capital, a private equity fund, has announced an investment in Dairy Classic Ice Creams Private Limited (“Dairy Day”), an ice cream brand in South India. The investment will also provide a full exit to Motilal Oswal Private Equity and other angel investors. Through the investment, Kedaara seeks to support the company’s vision of emerging as one of India’s most loved ice-cream brands, as per a company statement.
Dairy Day, headquartered in Bengaluru, has established a strong presence in the south with over 50,000 retailers. Dairy Day will soon be adding 1.5 lakh liters per day production capacity to its existing two lakh liters per day capacity, and it has achieved a revenue growth of 30 per cent compounded annual growth rate (CAGR) over the last decade, according to a company statement.
Kedaara will work closely with the promoters, M.N. Jaganath and A Balaraju, and the professional management team in the company’s next phase of growth.
Sunish Sharma, Founder and Managing Partner, and Anant Gupta, Managing Director of Kedaara Capital, said, “Ice cream is one of the fastest-growing categories within the entire food and beverage segment. Dairy Day’s dedication to quality and its commitment to delivering “goodness” have resonated deeply with consumers across its target markets, propelling the brand to a market-leading position.”
Vijay Dhanuka, Managing Director, MO Alternates, said, “As long-term shareholders and partners to M.N. Jaganath and team, we have had a ringside view of Dairy Day’s growth journey. Over the last six years, they have demonstrated strong growth and established a market-leading position in South India. With Kedaara coming in, we believe the company will be well-funded and strengthened to build an enduring business.”
Kedaara Capital is also on the verge of raising $1.7 billion, as per a report by Reuters. This could be India’s biggest private equity fund, according to a report. This fund will be 54 per cent larger than the company’s previous fund in 2021.
