Dairy startup Sid’s Farm secures $10 million funding

Direct-to-consumer dairy startup Sid’s Farm has raised $10 million in a Series A round of funding from venture capital firm Omnivore and Narotam Sekhsaria Family Office (NSFO), the company announced on Tuesday, June 25.

The startup intends to use the funds to establish a strong presence in Hyderabad and Bengaluru by enhancing manufacturing capabilities which would enable it to meet the growing demand for high-quality dairy products. Additionally, the startup also highlighted its commitment towards building a robust team to attract and to retain top talent across various functions.

According to IMARC Group reports, the dairy industry in India reached a size of Rs 6,792 billion in 2023 and is expected to reach Rs 49,953 billion by the year 2032.

Reihem Roy, partner at Omnivore, said "Premium dairy brands and products over D2C platforms are expected to lead this growth. We see Sid's Farm emerging as a key player in this space with its commitment to antibiotic-free, hormone-free, preservative-free milk and milk products."

“We have been following the great work being done by Sid’s Farm over the years and found the time opportune to invest in them and work with them to help propel them to the next orbit," said Narayanan Venkitraman of NSFO.

"We strongly believe that ventures such as Sid’s Farm with honest solutions to genuine concerns will drive consumption habits in the times to come," Venkitraman added. 

"This investment will be instrumental in accelerating our growth trajectory and enabling us to provide fresh, healthy, and responsibly sourced food to a wider audience in Hyderabad and Bengaluru," Dr Kishore Indukuri, Founder of Sid's Farm, said in a statement.

"We strongly believe that there is an opportunity to serve over 1,00,000 families every day in these two markets alone," he added.

Founded in 2016, Sid's Farm claims to serve over 25,000 customers across two cities. It controls the entire value chain of milk and milk products by sourcing directly from farmers and conducting rigorous quality testing throughout the supply chain to ensure nutrient-dense, additive-free milk.

NFSO was set up in 2006 with a focus on investment in private equity and capital markets. It seeks long-term partnerships in enterprises managed by world-class leadership teams that disrupt the status quo, establish new business paradigms, or pioneer services for untapped markets.