Bangalore headquartered Stellapps, a technology platform that is offering solutions to digitise the entire spectrum of dairy supply chain in the country, is expecting to raise a modest level of funding in the next round which will be concluded before June.
Speaking with indoasiancommodities.com, Ranjith Mukundan, CEO & Co-Founder, Stellapps, said the company has attained a sizeable scale and now it is looking to double its operations in the next three years.
“The company has been operational since 2011 and we have raised around $20 million so far from leading investors. In our next round, to be concluded before June this year, we are expecting to raise a further $15 to $20 million. This would be a bridge round before we go for a much larger funding round in the coming years as we have drawn a significant expansion plan,” Mukundan said.
Incubated at IIT-Madras, the company has received funding from some leading agencies and individual investors like Walden Riverwood Ventures-IndusAge, Bill & Melinda Gates Foundation (BMGF), Omnivore, former Flipkart co-founder Binny Bansal and others in the past.
The company is known for its full-stack IoT solution – SmartMoo — that covers and supervises milk production at the farm level, procurement at the collection centers and cold chain logistics for storage. For its cutting edge deliverables, the platform was recognised as one of the two World Economic Forum Technology pioneers from India last year.
According to Mukundan Stellapps, with its close association with some of the leading milk cooperatives and companies, has managed to reach out to around 33,000 villages in 22 states with its IoT powered solution resulting in 10.5 million litres of milk procurement and handling every day.
“We have close to 3 million registered farmers on our platform which includes farmers outside of the fold of cooperatives and milk unions,” he said.
The platform with fresh and large funding rounds in the future is now aiming at doubling its operational scale in the next three years.
“We are targeting to reach out to 70,000 villages with around 8 million dairy farmers registered on our platform. A scale of this kind would result in our solutions helping in procurement and handling of 20-22 million litres of milk every day,” he said.
India is the leading dairy producer in the world and the annual worth of its dairy output is estimated to be over $225 billion. The current daily output is estimated in the range of 540 million liters with the organized sector accounting for over one-fourth of it.
“In comparison to fruits and vegetables, the share of organised segments in the domestic dairy business is already high thanks to the efforts of agencies like Amul, Mother Dairy and several other cooperatives in different parts of the country. And this is slated to further rise. With right technological intervention, we can fix up some of the inherent structural problems like low productivity and difficulty in maintaining high quality standards. This is where we intend to make a difference with our platform,” Mukundan added.