Hocco, a premium ice cream company, raised $10 million (about Rs 83 crore) in the first tranche of a $20 million Series B fundraising round. The investment was co-led by the Chona Family Office (the brand’s promoters) and consumer-focused venture firm Sauce VC, with the second tranche likely to close later this year.

The new investment will be used to expand Hocco’s manufacturing capacity, develop distribution networks, and penetrate new cities in India. To capitalise on India’s growing appetite for premium food goods, the company intends to increase its investment in product innovation and marketing.

Ankit Chona, promoter of Hocco, said, “This fresh capital gives us the strength to dream bigger, reach farther, and serve many more with the joy of truly great ice cream.”

Chona’s family previously owned the legacy brand Havmor, which was sold 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 business by creating Hocco, which commenced full commercial operations in October 2023.

Hocco has positioned itself as a contemporary player with roots in legacy knowledge, focusing on regional and globally inspired flavours and having a significant presence in retail, quick-service restaurants, and quick-commerce channels. Despite opposition from well-funded incumbents such as Amul, Vadilal, and Hindustan Unilever (HUL), Hocco is pursuing an ambitious growth strategy.

Manu Chandra, founder and managing partner of Sauce VC, said, “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.”

Chandra added, “We are privileged to partner with this world-class team at a time when the market is witnessing robust growth, driven by improving disposable incomes and the rise of quick commerce.”

India’s premium ice cream category has emerged as one of the most competitive sectors of the packaged-foods business, thanks to shifting consumer preferences, the rise of e-grocery and delivery platforms, and increased demand in tier-2 and tier-3 cities.

According to a recent Wazir Advisors report, the Indian ice cream business would be worth more than $5 billion in fiscal year 25. Startups such as Walko Foods’ NIC, Go Zero, NOTO, Minus 30, and Hangyo (which received $25 million from Faering Capital in 2024) have all drawn investment interest in recent years.

Jungle Ventures led a $20 million round of funding for NIC in February, following an earlier $11 million round. Go Zero, which targets the mid-premium sector, aims to generate Rs 33 crore in sales in FY25.

HUL is also separating its ice cream division, which includes brands such as Kwality Wall’s, into a separate publicly traded entity in order to strengthen its emphasis on the category.

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