A dairy business that struggled to sell surplus milk during the Covid-19 pandemic has evolved into a sweets and savouries chain with more than 50 outlets and reported annual revenue of around ₹80 crore.
India Sweet House was founded by Bengaluru entrepreneurs Vishwanath Murthy and Shwetha Rajashekar, with the business growing out of their Karma Farms venture. The farm spans more than 20 acres and initially housed around 100 cows, with milk, paneer and ghee sold under the Karma Farms label.
Surplus Milk Triggered the Business Pivot
The original dairy model faced challenges during the pandemic. Demand for fresh milk became difficult to manage, while collecting and returning glass bottles made the direct-to-consumer distribution model more complicated.
Instead of continuing to sell milk primarily as a commodity, the founders began converting surplus milk into traditional Indian sweets. India Sweet House was subsequently established in 2020, turning a supply problem into a value-addition opportunity.
The company initially adopted an online-first model, selling through platforms including BigBasket, Metro Cash and Carry and SPAR India, before opening its first physical outlet in Bengaluru's Malleswaram in 2021.
From Dairy Products to a Wider Food Format
India Sweet House positioned itself between conventional low-cost sweet shops and premium mithai brands. Its outlets combine traditional sweets with chaats, savouries and snacks, while also providing seating for customers.
The product portfolio now extends beyond sweets to items such as murukku, chips, cookies and other savouries, alongside its Chaatimes business. The company remains concentrated largely in Karnataka but has indicated plans for expansion into other markets.
More Than 50 Stores
The company has expanded to more than 50 reported outlets through a combination of company-operated and franchise locations. Its own franchise information says the brand has reached 50 stores and is expanding across Bengaluru, Karnataka and beyond.
The business continues to retain a direct connection with its dairy origins. India Sweet House says its sweets are made using milk, khova and organic ghee sourced from its farm, which operates an automated milking parlour.
Revenue Crosses ₹80 Crore
According to financial data cited by Moneycontrol from Tracxn, India Sweet House recorded ₹83.10 crore in revenue in FY25, along with ₹6.15 crore EBITDA and ₹1.83 crore net profit.
The company also raised $1 million from Viney Equity Market in October 2024 in a funding round described as a pre-IPO raise, according to the report.
The journey highlights a broader opportunity within the dairy sector: converting milk into differentiated, branded and higher-value products can create a very different business model from selling liquid milk alone.
For dairy entrepreneurs, the India Sweet House story demonstrates how surplus milk, when combined with processing, product innovation and retail branding, can become the foundation for a value-added food business rather than simply a supply-chain problem.
Source: Dairynews7x7 08 Oct, 2026 Read full story here
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