The Rise Fund Injects $50M Into Indian Dairy Products Co.
Law360, New York– South Indian fresh dairy product supplier Dodla Dairy Ltd. has received a $50 million capital injection from an affiliate of private equity giant TPG Capital called The Rise Fund, the companies said on Thursday.
The investment is subject to regulatory approval, according to a statement. It marks the first food and agriculture investment made by The Rise Fund, and is also the fund’s first investment in India.
The Rise Fund is an investment vehicle created by TPG Growth founder and managing partner Bill McGlashan; U2 lead singer Bono, who is a special partner with TPG Growth; and entrepreneur and impact investor Jeff Skoll.
McGlashan said in a statement that the investment is meant to help provide India’s dairy farming industry with the resources it needs.
“India has more dairy farmers than any other country, and is the world’s largest and fastest-growing producer of milk. Yet many of the small farmers who produce that milk do not have access to the basic tools and networks necessary to sustainably and reliably generate profits,” he said.
“As a result, most of India’s smallholders are only earning a few dollars a day, surviving on the brink of poverty,” McGlashan added. “Investments that facilitate stronger and more efficient market links in this food value chain can help to significantly reduce rural poverty. With its conscientiously designed procurement strategy, Dodla is helping to meet this important need.”
Dodla says it has been in business for more than two decades, procuring and processing fresh milk and selling dairy products across 66 regions in South India. The company offers products like curd, butter and ghee. Dodla products are sold by more than 50,000 retail outlets across South India, it said.
The company procures its milk from local smallholder farms, working with 250,000 farmers across 7,000 villages every day of the year.
Sunil Reddy, founder of Dodla, said the company is “excited to partner with The Rise Fund to extend our reach and accelerate our growth.”
Reddy added: “Our procurement strategy — working closely with thousands of local farmers to bring our product to market — has helped us not only reach our leading position in the marketplace, but also positively impact our local communities. We feel proud and fortunate to put forward a high-quality product that also helps our suppliers thrive.”
The Dodla deal comes only a week or so after The Rise Fund announced its first-ever investment. In late April, the fund was part of a group that agreed to plug $190 million into a digital learning company called Everfi Inc.
Counsel information for the Dodla deal was not immediately available on Thursday.