India, Dec. 20 -- D2C dairy startup MilkStation has raised $2.5 Mn (around INR 22.5 Cr) from UK-based family dairy company V-Dairy. This marks the Rajasthan-based startup's first external capital raise.

MilkStation plans to deploy about half of the fresh capital towards capital expenditure, primarily for procuring new machinery and expanding its manufacturing facilities. The remaining funds will be channeled into market expansion, sourcing raw materials, marketing initiatives and setting up new ice-cream parlours, cofounder Nirmal Choudhary told Inc42.

Founded in 2021 in Pali, Rajasthan by brothers Nirmal and Manish Choudhary, MilkStation is positioning itself as a value-added dairy player rather than a traditional milk distributor. Its...