South India-based dairy company Milky Mist Dairy Food Ltd has raised around ₹482 crore in a pre-IPO funding round led by Temasek Holdings. This move shows strong investor interest as the company prepares to go public in 2026.
Out of the total funding, ₹357 crore is fresh investment in the company, while ₹125 crore comes from promoters selling a part of their stake. After this deal, the company’s valuation stands at about ₹9,300 crore, which is lower than its earlier expected ₹20,000 crore. Promoters will now hold around 88.86% stake in the company.
IPO Plans and Use of Funds
Milky Mist had already received approval from Securities and Exchange Board of India in October 2025 to launch a ₹2,035 crore IPO. After this latest funding, the size of the fresh issue may be reduced.
The company plans to use a large part of the funds to reduce its debt, which is quite high due to heavy investment in infrastructure. Around ₹750 crore will go towards loan repayment. It will also invest ₹414 crore to expand its Perundurai plant and set up new units for whey protein, yogurt, and cream cheese. Another ₹129 crore will be used to place coolers and freezers in retail stores to improve product reach.
Business Strength and Growth
Founded by T. Sathish Kumar, Milky Mist focuses only on value-added dairy products like paneer, cheese, butter, yogurt, and ice cream instead of regular milk. This helps the company earn better margins.
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It sources milk directly from over 67,000 farmers and supplies products to more than 3.5 lakh retail outlets across India. The company is also a leader in packaged paneer, with around 17% share in the organised market.
Growth Ahead with Some Challenges
Milky Mist has shown strong growth, with revenue reaching ₹2,349 crore in FY25 and expected to cross ₹3,200 crore in FY26. Profits have also increased sharply.
However, the company still faces challenges like high debt and heavy dependence on South India. Going forward, it plans to grow through high-protein products, quick delivery platforms, and exports to new markets.