Dairy tech firm Stellapps raises $26 Mn to accelerate mooMark business

Dairy tech firm Stellapps Technologies has raised $26 million in its Series C funding round, which included both equity and debt financing. This round saw contributions from existing investors like Blume Ventures, Omnivore, and the Bill & Melinda Gates Foundation, as well as new investor Miledeep Capital. The U.S. International Development Finance Corporation (DFC) provided the debt funding.

This new funding round marks a return after a three-year hiatus for the Bengaluru-based firm, which previously raised $18 million in a pre-Series C round from Nutreco in October 2021. To date, the company has raised nearly $50 million.

Ranjith Mukundan, the founder and CEO of mooMark, said that the capital raised will allow the company to expand its value-added dairy product offerings sustainably to customers throughout India. Additionally, it will strengthen mooMark's export segment. The vertical focuses on contract manufacturing and private-label dairy products, emphasizing high quality, sustainability, and traceability in its offerings.

While Stellapps began as a Dairy IoT solutions provider, it has evolved into a significant player in contract manufacturing and private labeling of value-added dairy products under the "mooMark" brand. The company employs a low-capex, tech-powered approach to deliver its products to both Indian and global customers.

According to the company, its sophisticated tech stack enhances traceability and sustainability, ensuring that mooMark products are fully traceable and help reduce the carbon footprint, especially at the farm level. This capability enables FMCG, D2C, and HoReCa businesses to offer premium, unique dairy products that support their net zero goals.

The company claims to impact over 3.5 million farmers across 42,000 villages, digitizing more than 14 million liters of milk flow each day.

Stellapps reported a revenue of roughly Rs 360 crore in FY24 and is aiming for Rs 400 crore in FY25, with audited results still forthcoming. According to startup data intelligence platform TheKredible, the company had Rs 305 crore in revenue and faced nearly Rs 32 crore in losses in FY23.

Several dairy brands, including Country Delight, Akshayakalpa, and Sid’s Farm, have secured venture funding this year, while Otipy and Milky Mist are in discussions to raise additional capital.