Dairy businesses across the globe are facing a slow down and shutting down in many parts of the world partly due to the rising vegan movement.
Last month, Bengaluru based milktech startup Doodhwala shuttered down its business and transferred its customer base to FreshToHome (FTHDaily) for some 30 to 40 million rupees. However, it was due to the lack of funds. The VC backed venture was in need of more funds but couldn't find any investor.
But it couldn't pay its due of about 60 to 70 millions to about 30-35 vendors. Recently its vendors filed an F.I.R. against absconding founders of Doodhwala.
And days after this F.I.R., its employees also filed a F.I.R. for non-payment of their salaries, provident fund contribution or income tax payments.
Although India is a huge market for micro-delivery and grocery suppliers like Flipkart & Grofer turned into a unicorn; investors are not convinced that dairy businesses can be profitable in long term. So who will be next to go?
Many investors opine that it could be DailyNinja, BB Daily or Milkbasket.
No doubt Dairy is Scary!
Ditch Dairy, Go Vegan!