Kedaara Capital Invests in Dairy Day: A Sweet Deal in the Ice Cream Industry

Bringing Fresh Funds and Vision to Dairy Day's Expansion

Kedaara Capital Invests in Dairy Day: A Sweet Deal in the Ice Cream Industry In a significant move within the ice cream industry, Kedaara Capital has announced its maiden investment in Dairy Classic Ice Creams Private Limited (Dairy Day), a prominent ice cream brand headquartered in Bengaluru. This investment marks a strategic effort to propel Dairy Day’s growth trajectory across India and facilitate a complete exit for Motilal Oswal Private Equity and other angel investors, as per the company’s statement.

Kedaara Capital Invests in Dairy Day: A Sweet Deal in the Ice Cream Industry

The Investment and Growth Strategy

The undisclosed investment, estimated to be around $150 million, signifies one of the largest private equity deals within the ice cream sector, positioning Dairy Day for accelerated expansion and market dominance. With this infusion of capital, Kedaara Capital aims to collaborate closely with Dairy Day’s promoters and management team to steer the company through its next phase of growth.

Sunish Sharma, Founder and Managing Partner, and Anant Gupta, Managing Director of Kedaara Capital, emphasized the immense potential of the ice cream market, citing its rapid growth within the broader food and beverage segment. They expressed confidence in Dairy Day’s commitment to quality and consumer-centric approach, positioning the brand as a market leader poised for further success.

Dairy Day’s Journey and Market Position

Established in 2002 by MN Jaganath, A Balaraju, and their team, Dairy Day has established a robust presence across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, boasting an extensive network of over 50,000 retailers. The brand offers a diverse range of products in various flavors and formats, catering to both traditional and online channels.

With a remarkable revenue growth at a compound annual rate of 30% over the past decade, Dairy Day is primed to enhance its production capacity from 2 lakh liters to 3.5 lakh liters per day. This expansion underscores the brand’s commitment to meeting escalating consumer demand while maintaining its reputation for quality and excellence.

Partnership for Success

MN Jaganath, Managing Director and CEO, and A Balaraju, Director – Technical of Dairy Day, expressed their enthusiasm for the partnership with Kedaara Capital, highlighting the alignment of values and shared aspirations. They lauded Kedaara’s wealth of expertise and retail acumen, anticipating significant contributions to Dairy Day’s vision of becoming one of India’s most beloved ice cream brands.

The strategic collaboration between Dairy Day and Kedaara Capital not only signifies a transformative phase for the brand but also reflects the broader dynamism within the ice cream industry. As consumer preferences evolve and demand for premium-quality products rises, Dairy Day stands poised to capture new heights of success with the backing of Kedaara Capital’s strategic investment and guidance.

The partnership between Kedaara Capital and Dairy Day heralds a new era of growth and innovation in the ice cream sector, promising delectable delights and sweet success for consumers and stakeholders alike.