From delivering fresh milk to daily essentials, Country Delight is carving out more space in the kitchen. Can the natural foods' brand continue to delight?
Chakradhar Gade (right) and Nitin Kaushal co-founded Country Delight in 2011
Image: Amit Verma
The computer science engineer was quick to process the data. Back in 2011, around 70 lakh litres of milk was consumed in Delhi every day. “Even if you are able to sell 1 lakh litre, it’s a good outcome,” says Chakradhar Gade, who co-founded Country Delight with Nitin Kaushal in 2011, and ran the part-time business of supplying fresh milk in Delhi for two years. The retentive nature of the venture lured the duo to get into the business of milk, which had a long gestation period. But this is exactly what Gade was looking for. “It didn’t make sense to put all your capital in a high-risk, high-return play,” he says, explaining his move to bootstrap the company by pumping in ₹1 crore. When you have a limited pool of capital, he underlines, a business with some sort of built-in safety and predictability makes sense. “Sales predictability was very high in milk,” recounts Gade, who started his career with Infosys and then worked at financial services’ firm Indxx Capital Management.
For the hedge fund analyst, there was another reason for opting for a milky way of life. “When you buy cattle, it multiplies. But when you buy a car, the value depreciates,” says Gade. Though the logic sounded naïve, the idea was simple. Milk production, and customers, will keep growing. The fact that Delhi-NCR was the fortress of giants like Mother Dairy and Amul didn’t deter the Davids. “When you are in your 20s, you think kuch bhi kar sakte hain [you can do anything],” says the IIM grad, who was more than delighted to quit his job in 2013 to live his dream. Youth, he underlines, gives you some level of confidence that you’ll figure it out. A high-quality product with minimal processing, and delivered directly to doorsteps, Gade reasoned, would lead to consumer stickiness.
A year into the business, Gade did find stickiness, though of a different kind. The fledgling milk startup, which had around 100 cattle, was on the verge of being white-washed. “We couldn’t understand how to manage the cattle,” he recounts. The milk production, consequently, dipped as the milk cycle was unpredictable. Moreover, 70 percent of the bootstrapped capital was already burnt. During the initial years, figuring out procurement of milk, fixing last-mile delivery, working on the arithmetic of customer acquisition, integrating supply chain with technology and building scalability became big problems to solve. Though friends and family chipped in with more money, the two young men were getting used to a life outside air-conditioned rooms. The heat was on.
The boiling point, though, came in 2017. After staying bootstrapped for over six years, Gade was out in the market to raise his first round of funding. And the first question from Rehan Yar Khan, managing partner at Orios Venture Partners, stumped the engineer. “What does your brand stand for?” the funder asked. By early 2017, Country Delight had managed to survive and grow at a decent pace, and the business was in mid-single digit crore. It was a difficult question for the co-founder, who hailed from a finance background. “What do you mean?” quipped Gade, who pointed out how the business has grown manifold from ₹75 lakh in FY14. Though the business idea, model and product were clear, the engineer missed out on a crucial data input: A compelling brand proposition.
Six years after raising a seed round, Gade decodes brand Country Delight. “We are a mass premium brand,” he says. Country Delight, he claims, sources produce from a network of farmers within a 200-km radius, and is not too expensive so as to miss out on catering to the belly of the consuming segment of the population in the country. “We deliver fresh, natural and minimally-processed products directly to your doorstep,” he contends. The delight on his face is hard to miss. Khan too is excited to be part of the consumer brand. “It’s a delight to back Country Delight,” says a beaming venture capitalist.