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Akshayakalpa, an organic dairy startup, is in advanced talks to raise $25 million (about Rs 200 crore) from A91 Partners in what would be another growth-stage deal in recent weeks, indicating green shoots in the overall funding activity.

The company, which lets users order milk and other dairy products on its platform, is targeting a post-money valuation of approximately $75-80 million, a person with direct knowledge of the matter told YourStory. The transaction, potentially marking the 17th growth-stage deal in the last month, is anticipated to be finalised and officially announced in the upcoming weeks, the person said requesting anonymity.

“The company is largely present in Bengaluru and is looking to expand its operations beyond the city,” the person quoted above said.

“It has some presence in Chennai and Hyderabad, and it will look to penetrate deeper into these two cities. I don’t think as of now, there are talks of expansion beyond these cities,” they added.

A91 Partners and Akshayakalpa did not respond to queries sent by YourStory.

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Shashi Kumar, Founder &amp; CEO of Akshayakalpa Organic

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Should the transaction proceed as planned, it would empower Akshayakalpa to bolster its position in the increasingly competitive dairy products market in India, where traditional players typically enjoy the lion’s share. Rival brand Country Delight secured a substantial $108 million in a funding round last year. Milky Mist, another dairy products brand, has also been in talks with private equity firms like WestBridge Capital to raise funds, according to media reports.

Akshayakalpa, founded by Dr GNS Reddy and Shashi Kumar in 2010, produces organic milk and works with over 750 farmer families, as per the company. Its products are available at over 2,000 retail and quick commerce outlets apart from being offered through its proprietary platform.

The company, which raised its Series B funding round in September last year from British International Investment (BII), a development finance institution from the UK, and Rainmatter Foundation, along with existing investors like Venture Dairy, also counts Lok Capital as its backer.

Akshayakalpa recorded a 12% growth in its FY22 revenue to Rs 116 crore, however, this stood in sharp contrast to the 70% increase in the figures during 2020-21. However, the company managed to narrow its loss to Rs 19.4 crore in FY22 from over Rs 30 crore in the previous fiscal year.