Pravin More, a marginal farmer from Nune village in Satara’s farming belt with just 3–4 cattle, has seen the milk yield of his herd rise from 3–4 litres a day to 12–15 litres over the past three years after shifting from commercial feed mixes to homegrown organic fodder under Akshayakalpa’s farm-led model—a shift that reflects a deeper change in how value is being built in India’s food system, moving upstream from testing milk at collection centres to redesigning how it is produced at the farm.

That model, first built in Tiptur, Karnataka, now underpins a business producing about 2.1–2.5 lakh litres of milk daily and serving nearly 70,000 households across Bengaluru, Chennai and Hyderabad. Revenues have risen from about ₹350 crore in FY25 to an estimated ₹550–600 crore in FY26, with a trajectory toward ₹700 crore. The company is now looking to replicate the system in Maharashtra, with a ₹200 crore processing hub and farmer network coming up in Mawal near Pune to anchor its entry into the Mumbai market.

The divergence is also visible in scale. Industry analysts say Country Delight is estimated to have crossed around ₹2,000 crore in revenue in FY26, and carries a valuation of ₹6,950 cr while KisanKonnect is in the ₹200–400 crore range with a valuation of 690 cr. In comparison, Akshayakalpa has a valuation of ₹1,600-1,700 crore, but more deeply integrated into its supply chain.

From farm to formula: Fixing inputs, not testing outputs

Akshayakalpa co-founder & CEO Shashi Kumar built the business over a decade by focusing on farm-level control rather than procurement. “No amount of testing can fix the problem, you have to go back and fix farming,” he said.

At the core of that argument is food. Much of India’s dairy supply depends on commercial concentrate feeds, which, if not managed carefully, can introduce contaminants such as aflatoxins, something downstream testing cannot fully eliminate. “You can reject milk, but you cannot fix the problem unless you fix what the animal is eating,” Kumar said.

That approach stands in contrast to platforms such as Country Delight and KisanKonnect, which have scaled rapidly by aggregating supply and testing quality at collection points. Akshayakalpa instead works with over 2,800 certified organic farmers across multi-year cycles, managing soil health, cattle feed and certification to build a closed-loop system where quality is controlled at source.

When the model starts paying off

The company is coming off a strong year. Revenue is expected to close FY26 at around ₹600 crore, a sharp jump from the previous year, and it has reached overall breakeven for the first time. Its mature Bengaluru operations are generating EBITDA margins of about 8 per cent, signalling that the model becomes viable once clusters stabilise.

A Series D totalling ₹350 crore, led by Temasek-backed ABC Impact, with participation from Rainmatter, Catamaran Ventures, A91 Partners and British International Investment, has pushed its valuation to about ₹1,500–1,700 crore, roughly triple what it was three years ago.

Capital, but no clear exit

The IPO, however, is not guaranteed. In India’s organic sector, going public and getting acquired are no longer separate outcomes—they are increasingly part of the same process. Deals such as ITC’s acquisition of 24 Mantra, Tata Consumer’s buyout of Organic India and Reliance’s purchase of Manna reflect a market where IPO filings often double up as valuation signals to strategic buyers.

Akshayakalpa sits in an unusual position, too large for SME markets, yet built on a farm-integrated model that is harder to fold into traditional FMCG structures.

Squeezed from both ends

There is also a more immediate competitive pressure the growth numbers don’t fully capture: Amul. The dairy cooperative is entering organics at relatively modest price premiums, while FMCG majors such as ITC, Tata Consumer and Reliance are shaping the category through acquisitions.

As mass players move downward and large brands move inward, premium organic companies face a squeeze from both ends. Akshayakalpa’s response is to double down on what is hardest to replicate: supply chain dept. Unlike aggregator-led platforms that can onboard suppliers quickly, the company builds clusters over several years. It works directly with farmers, managing inputs from soil to feed to certification, creating a closed-loop system that is difficult to scale quickly but harder to replicate.

Why scaling is slow, and deliberate

The Maharashtra expansion reflects that discipline. “We don’t enter a market until the farm ecosystem is ready,” Kumar said. “For us, expansion is supply-first, not geography-first.” Supply for Mumbai will initially come from nearby dairy belts such as Satara, Sangli, and Kolhapur, with volumes ramping up gradually as more farmers transition to organic practices. The process involves changes in fodder systems, soil health and certification, often taking multiple years to stabilise.

Building local food grids, by design

“We are creating local food grids,” Kumar said, describing a decentralised model where each region develops its own supply base rather than relying on centralised sourcing. That constraint also shapes its consumer strategy. The company avoids deep discounting and focuses on a narrower base. “We don’t need all customers, we need the right customers,” Kumar said. At its core, the model is built on farmer economics. “If farmers don’t make money, they won’t produce good food,” he said.

Scaling by replication, not aggregation

Instead of scaling through supplier aggregation, the company focuses on building one successful farmer per village as a replicable model. “Scaling for us is role modelling—others will copy,” Kumar said

Beyond milk, Akshayakalpa is building a broader “organic kitchen” portfolio—high-protein milk, Greek yogurt, ghee, honey, and millet-based products. Value-added products currently contribute 15–20% of revenue, with a target of 30–40%. By FY27, the company also plans to monetise carbon and ESG credentials, while its QR-based traceability infrastructure could gain importance as organic labelling norms tighten.

As platforms such as Country Delight and KisanKonnect continue to scale rapidly on aggregation and reach, Akshayakalpa is betting on a slower path—building control at the farm even if it comes at the cost of speed. “In the end, it’s not about how fast you scale,” Kumar said. “It’s about whether you control what goes into the food.”

Published on April 20, 2026