Source: Inc42
Hocco, a premium ice-cream brand, raised $10m in the first closing of its $20m series B round. The financing will be used to expand the company’s manufacturing facilities, open in new geographic markets in India, and support product and brand development.
The round was co-led by Chona Family Office, which also started Hocco and has decades of experience backing companies in the Indian food and beverage space itself, and Sauce VC, a consumer-focused investment firm run by Manu Chandra The rest of the $20 million is expected to be raised later this year.
Currently, the company operates a large, modern, end-to-end ice cream production facility close to Ahmedabad which manufactures 40,000–50,000 liters of ice cream every day. With the fresh funding, Hocco aims to grow this capacity to 1.3 lakh litres per day by next summer.
In addition to ramping up manufacturing, the company will also concentrate on its retail operation. It already operates 100 stand-alone ice cream parlors in towns and cities and plans to take that number to 200 by the end of the next financial year. Hocco is also seeing fast expansion via fast-commerce sites like Swiggy Instamart and Blinkit. Currently making up 8–10% of sales, this category is predicted to increase to 20%.
Ankit Chona, promoter of Hocco, said, “The fresh capital gives us the strength to dream bigger, reach farther, and serve many more with the joy of truly great ice cream,” said Ankit Chona, promoter of Hocco, in a statement.
India’s premium ice cream segment has seen increased activity, driven by higher disposable incomes and the growth of retail channels such as quick commerce and delivery platforms. Companies in the sector have focused on ingredient quality and differentiated branding to attract urban consumers.
“Hocco’s unparalleled scale-up journey in less than two years reflects the deep expertise and goodwill the Chona family enjoys in the ice cream space. As the market is witnessing strong growth in India, driven by improving disposable incomes and easier access through new age channels such as quick commerce, we are privileged to partner this world-class team on their next leg of growth”, said Chandra in a statement.
Despite operating in a multibillion-dollar market long dominated by established giants like Hindustan Unilever (HUL), Amul, and Vadilal, emerging brands have successfully carved out their own space. Hocco, targeting the mass market, recorded Rs 200 crore in revenue for FY24 and is setting its sights on Rs 500 crore for FY25. Go Zero, positioned in the mid-premium segment, is aiming to reach Rs 33 crore in FY25. Meanwhile, Walko Foods — the parent company of NIC Ice Creams — reported Rs 170 crore in revenue in FY23, with updated figures yet to be announced.
