Ahmedabad-based ice cream brand Hocco has successfully concluded a Rs 100 crore ($12 million) fundraise, led by its promoter group Chona family and existing investor Sauce VC.
This primary capital infusion has propelled the company’s valuation to Rs 600 crore post-investment and has attracted participation from notable angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar.
In an interview with ET, Ankit Chona, managing director of Hocco, disclosed that the funds will be allocated towards expanding the company’s manufacturing capacity. Despite being just eight months old, Hocco aims to achieve a revenue of Rs 200 crore by the fiscal year ending March 2025.
The Chona family’s legacy in the ice cream industry dates back to the sale of their brand Havmor to South Korean conglomerate Lotte in 2017 for Rs 1,020 crore. Following this transaction, consumer-focused investment firm Sauce VC now holds approximately 10% stake in Hocco.
Chona expressed surprise at the rapid growth of Hocco, stating, “What we predicted we’d be doing in the second or third year, we’ve ended up doing in the first year.” Currently, the brand’s plant capacity stands between 40,000-50,000 litres a day, with plans to triple this capacity to reach 1.3 lakh litres a day by the next summer.
The Indian ice cream market, estimated to be around $5 billion in size this year, has witnessed the emergence of several new-age brands in recent years, aiming to carve a niche in a market dominated by legacy players such as Amul, Mother Dairy, and Hindustan Unilever’s Kwality Walls.
Manu Chandra, founder and managing partner of Sauce VC, attributes the expansion in the ice cream market to increasing disposable incomes and the rise of channels like quick commerce, catering to digitally savvy consumers seeking instantaneous gratification for their indulgence cravings.
Looking ahead, Hocco eyes quick commerce as a key opportunity for geographical expansion beyond Gujarat, its primary market. The company aims to double its sales in FY26 compared to FY25, penetrating deeper into Gujarat and expanding into nearby geographies such as Rajasthan, Maharashtra, and Delhi-NCR.
Chona emphasized the potential of quick commerce in revolutionizing the ice cream industry, citing its ability to provide 10-minute deliveries and cater to impulse purchases, despite challenges related to SKU depth on quick commerce platforms.
