Ranchi-based HR Food Processing, which manufactures and markets dairy products under the brand 'Osam', has raised Rs 45 crore from investment firms Lok Capital and Aavishkaar India.
HR Food Processing has "raised Rs 45 crores (USD 6.7 million) in Series B funding. This round of funding was led by Lok Capital advised Growth Catalyst Partners (GCP) - the third fund from the India focused VC firm along with co-investment from existing investor, Aavishkaar India II Company Ltd," the company said in a statement.
The funds would be utilised by the company to expand its production capacity and further its distribution outreach into neighbouring districts in Jharkhand and Bihar.
The funding in Osam marks Lok's first investment in dairy and second investment in the agri-diary space, following earlier investment in a Pune-based company SV Agri Processing from its fund II - Sarva Capital.
Following the commercial launch in 2015, Osam has established itself as a leading private dairy brand in Jharkhand, with a procurement network reaching more than 10,000 dairy farmers, processing around 40,000 litres per day and selling products through a network of 3,000 plus retailers across Jharkhand.
Leveraging this funding, HR Food has already acquired another dairy plant in Jharkhand and is looking at other acquisitions to capture a significant share of eastern India's dairy market.
On the latest round of funding, Abhinav Shah, Co-founder and CEO of HR Food, said, "With this round of fund raise, Osam is well poised to deepen its outreach into key target markets in Eastern India, with an expanded production capacity enabling our growth, and emerge as the leading dairy brand in Eastern India".
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