Farmery: Scaling a Start-Up in an Emerging Economy
Farmery's mission was to supply fresh, pure cow's milk, to households in the National Capital Region of India within 24 hours of milking. After two years of operations, Farmery had become profitable and had introduced many firsts in the consumer milk market in India. It delivered raw cow's milk to 5,000 households daily, maintained a cold supply chain, and adopted a capital-efficient business model and end-to-end technology-driven operations and customer service. In early 2018, Farmery was facing a challenge in scaling the business for the next phase of growth. Farmery's funding constraints prevented it from expanding in more than one direction at a time. Co-founder Arora therefore had to choose: should he consolidate Farmery's operations within its existing geographic market and offer customers a wider portfolio of products, or should Farmery continue limiting its offerings to fresh milk products but expand geographically, in order to maximize new customer growth?