Hocco, a premium ice cream firm, raised $10 million (about Rs 83 crore) within the first tranche of a $20 million Sequence B fundraising spherical. The funding was co-led by the Chona Household Workplace (the model’s promoters) and consumer-focused enterprise agency Sauce VC, with the second tranche more likely to shut later this 12 months.
The brand new funding will probably be used to develop Hocco’s manufacturing capability, develop distribution networks, and penetrate new cities in India. To capitalise on India’s rising urge for food for premium meals items, the corporate intends to extend its funding in product innovation and advertising.
Ankit Chona, promoter of Hocco, mentioned, “This contemporary capital provides us the power to dream larger, attain farther, and serve many extra with the enjoyment of actually nice ice cream.”
Chona’s household beforehand owned the legacy model Havmor, which was bought to South Korea’s Lotte Group in 2017 for roughly Rs 1,020 crore. After a non-compete provision expired in late 2022 (not 2019), the Chonas returned to the ice cream enterprise by creating Hocco, which commenced full industrial operations in October 2023.
Hocco has positioned itself as a up to date participant with roots in legacy information, specializing in regional and globally impressed flavours and having a big presence in retail, quick-service eating places, and quick-commerce channels. Regardless of opposition from well-funded incumbents corresponding to Amul, Vadilal, and Hindustan Unilever (HUL), Hocco is pursuing an bold development technique.
Manu Chandra, founder and managing associate of Sauce VC, mentioned, “Hocco’s unparalleled scale-up journey in lower than two years displays the deep experience and goodwill the Chona household enjoys within the ice cream area.”
Chandra added, “We’re privileged to associate with this world-class workforce at a time when the market is witnessing sturdy development, pushed by bettering disposable incomes and the rise of fast commerce.”
India’s premium ice cream class has emerged as some of the aggressive sectors of the packaged-foods enterprise, because of shifting shopper preferences, the rise of e-grocery and supply platforms, and elevated demand in tier-2 and tier-3 cities.
In line with a latest Wazir Advisors report, the Indian ice cream enterprise can be value greater than $5 billion in fiscal 12 months 25. Startups corresponding to Walko Meals’ NIC, Go Zero, NOTO, Minus 30, and Hangyo (which acquired $25 million from Faering Capital in 2024) have all drawn funding curiosity lately.
Jungle Ventures led a $20 million spherical of funding for NIC in February, following an earlier $11 million spherical. Go Zero, which targets the mid-premium sector, goals to generate Rs 33 crore in gross sales in FY25.
HUL can also be separating its ice cream division, which incorporates manufacturers corresponding to Kwality Wall’s, right into a separate publicly traded entity with a view to strengthen its emphasis on the class.
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