Private equity fund Kedaara Capital on Thursday announced an undisclosed investment in Dairy Classic Ice Creams, which runs the south-focused 'Dairy Day' brand.
The investment will provide a full exit to Motilal Oswal Private Equity and also other angel investors, as per an official statement.
Details of the investment like the overall amount invested, and stake bought were not disclosed.
Some reports pegged it to be a $150 million bet with which Kedaara has bought a majority stake.
The Bengaluru-headquartered company's products are sold by 50,000 retailers in Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, and Maharashtra, the statement said, adding that its revenues have grown by 30 per cent per year on a compounded annual growth basis over the last ten years.
It has a production capacity of 2 lakh litres per day, and will soon be adding 1.5 lakh litres, the statement said.
According to the statement, Kedaara will work closely with the company's promoters M N Jaganath and A Balaraju, and the professional management team in Dairy Day's next phase of growth.
"Their wealth of expertise and in-depth retail and consumer experience will be invaluable as we expedite our growth," the promoters said in the statement.
Kedaara's Founder and Managing Partner Sunish Sharma and Managing Director Anant Gupta said ice creams are among the fastest growing categories in the entire food and beverage segment, and added that the company's quality focus has resonated with the target consumers.
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