Osam Dairy raises 45 Cr from Lok Capital and Aavishkaar

Ranchi-based HR Food, which manufactures and markets dairy products under the brand ‘Osam’ has raised Rs 45 crores ($6.7mn) 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 funds will be utilised by the company to expand its production capacity and further its distribution outreach into neighbouring districts in Jharkhand and Bihar.

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 fundraise, 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.

Founded by Abhinav Shah, Rakesh Sharma, Abhishek Raj and Harsh Thakkar, HR Food’s integrated model, procures milk directly from farmers in Bihar, processes it at its facility in Jharkhand and sells its products like milk, curd, lassi, and paneer to retailers.

Talking about the latest round of funding, Abhinav Shah, Co-founder and CEO of HR Food, said, “We are very excited to partner with Lok Capital for this critical fundraise and thankful for Aavishkaar’s ongoing support, which has been indispensable in building the Osam story. With this round of fundraise, Osam is well poised to deepen its outreach into key target markets in East India, with an expanded production capacity enabling our growth, and emerge as the leading dairy brand in Eastern India.”