Dairy ingredients firm Ace International raises $35 million to expand business

Dairy tech company Ace International Limited has raised $35 million in a funding round led by Dutch development bank FMO.

The round also saw participation from global investors including ResponsAbility, Incofin, and Fiedlin Ventures.

This is the company’s first institutional fundraise, and the funds will be used to build a new, fully integrated dairy ingredients and nutrition facility in Kuppam, Andhra Pradesh.

The upcoming facility will bring advanced dairy nutrition processing technology to the Asian market and will help produce specialised nutrition ingredients for global food and nutrition companies.

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Sanjeev Goyal, Founder and Chairman of Ace International Limited, said, “This partnership goes beyond capital. We have built ACE on the belief that innovation in food technology can support better nutrition outcomes, and this investment helps us take that vision forward.”

Wim Wienk, Director at Fiedlin Ventures, said: “We are proud to leverage our investment with the contributions of FMO, responsAbility, and Incofin. Together, we are unlocking the growth potential of Ace.”

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Peter Bryde, Director Private Equity of FMO, said: “We are excited to partner with both Incofin and responsAbility to invest in this reputable dairy derivatives company in India. Ace distinguishes itself by its competent and modern management, its established position in the market and entrepreneurial mindset enabling them to constantly develop new products and enter new market segments. The investment in Ace fits FMO’s strategy to invest in sustainably managed businesses that focus on value creation in the food sector. The consortium’s investment will enable the company to further expand its smallholder farmer supply chain from some 49,000 smallholders now to more than 80,000 by 2030.”

Located in a key agricultural region and supported by strong logistics, the Kuppam facility will work with over 40,000 farmers, including many women, through sourcing partnerships aimed at boosting rural livelihoods, the company said.

Ace International produces and exports dairy products and ingredients, processing raw milk into infant and adult nutrition inputs, ready-to-mix products, whey proteins, milk powder, ghee, butter fat, and protein formulations for both B2B and B2C customers.

The company currently exports to Bangladesh and the Philippines and plans to expand its exports to Southeast Asia, the Middle East, Africa, and the United States.

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