Anicut Capital has invested Rs 7 crore in Uzhavarbumi, a startup that delivers milk directly to consumers.
According to a press release from Uzhavarbumi, the money will be used to build out technology infrastructure, upgrade plant and machinery equipment, hire more staff, and expand operations throughout Bengaluru and Hyderabad.
Uzhavarbumi, a company founded by Vetrivel Palani, encourages direct trade between farmers and consumers by supplying farm-fresh milk to Chennai’s urban areas at a better market price and building a link between the consumers and the primary producers (farmers). A stable income is also provided to farmers as a result of Uzhavarbumi buying their milk all year long.
The startup claims to buy dairy products from over 2,200 farmers and deliver them to over 15,000 customers through 42 hubs it runs throughout Chennai. According to the company, it delivers more than 15 lakh packages to homes annually to meet the rising demand for farm-fresh milk.
According to Uzhavarbumi, their environmentally friendly delivery method of using glass bottles has been well received by customers and reduces the use of plastic by 7 tons annually.
It faces competition from several other D2C dairy brands that also sell milk-based products, including Milk Mantra, Milky Mist, Country Delight, Akshayakalpa.
The Grand Anicut Fund 3 and the Anicut Angel Fund are the two debt funds currently managed by Anicut Capital. Brands like Wow! Momo, Bira, Sugar Cosmetics, Earth Rhythm, Sharechat, Agnikul, and others are among its portfolio companies.