Ahmedabad-based ice cream brand Hocco has successfully raised Rs 100 crore (approximately $12 million) in a new funding round. The investment, led by the Chona family and existing investor Sauce VC, has propelled Hocco’s valuation to an impressive Rs 600 crore. Prominent angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar, also participated in this funding round.
Expansion Plans Fueled by New Capital
Ankit Chona, Hocco’s managing director, revealed that the funds will be used to expand the company’s manufacturing capacity. Despite being just eight months old, the brand is already projecting to achieve Rs 200 crore in revenue for the fiscal year ending March 2025.
Legacy and Growth Trajectory
The Chona family, known for selling their legacy brand Havmor to South Korean conglomerate Lotte for Rs 1,020 crore in 2017, is now focusing on Hocco’s rapid growth. Sauce VC, which has invested in notable new-age brands like Mokobara and The Whole Truth, now owns approximately 10% of Hocco.
“We started in October last year with high hopes, but the response exceeded our expectations. What we anticipated achieving in our second or third year, we’ve accomplished in the first year. Our current plant capacity is between 40,000-50,000 liters a day, far surpassing our initial projection of 15,000 liters by May. By next summer, we aim to triple this capacity to 1.3 lakh liters a day,” said Chona.
Competitive Landscape and Industry Insights
The Indian ice cream industry, valued at around $5 billion, has seen the emergence of several new-age brands like Noto, Get A Way, Go Zero, Frubon, and Minus 30. These brands are challenging established players such as Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria group-owned Cream Bell. Investment firms like DSG Consumer Partners, Jungle Ventures, Saama Capital, and Fireside Ventures are backing these new players.
Manu Chandra, founder and managing partner of Sauce VC, commented, “The growth in the ice cream market reflects the increasing disposable incomes directed towards impulse and indulgence categories. Quick commerce channels connect digitally savvy consumers who seek instant gratification, a trend that wasn’t possible five years ago.”
Quick Commerce and Market Expansion
Chona emphasized the potential of quick commerce in expanding Hocco’s reach beyond Gujarat. “Currently, our revenue primarily comes from Gujarat and some quick commerce sales. We started quick commerce in February, and our sales through this channel have been doubling every month,” he said. Hocco plans to penetrate deeper into Gujarat and expand into Rajasthan, Maharashtra, and Delhi-NCR by next summer.
“Quick commerce is a significant disruptor for the ice cream industry. It satisfies the immediate demand with 10-minute deliveries. However, the challenge is that these platforms carry numerous brands, limiting the depth of SKUs. Nevertheless, it’s a huge opportunity,” Chona added.
What do you think about Hocco’s rapid growth and expansion plans? Do you believe quick commerce will revolutionize the ice cream industry? How do you see new-age brands competing with legacy players in the market? Share your thoughts and join the conversation in the comments below!
