Hocco raises $10M in Series B round to support expansion

Ice cream brand Hocco has raised $10 million as part of a $20 million Series B funding round to expand its production capacity and broaden its geographic footprint, the company said on Thursday.

The round was co-led by the Chona Family Office, which founded Hocco and has prior experience in the Indian food and beverage industry, and Sauce VC, a consumer-focused venture capital firm led by Manu Chandra. 

The remainder of the $20 million Series B round is expected to close later this year.

The funding will increase manufacturing output, expand distribution networks, and support entry into new markets across India. The company also plans to invest in product development and brand marketing.

Hocco has positioned itself as a premium ice cream brand, offering both regional and globally-inspired flavours. It has expanded its presence in several Indian cities since its founding and is aiming to scale further amid growing demand for premium food products.

“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. 

Hocco is one of the new-age brands that has emerged recently. Riding the wave of quick commerce, the new crop of ice cream brands has emerged, challenging the long-held belief that the category must be slow-growing and capital-intensive. Investors have taken note, backing brands like NIC Ice Creams, Go Zero, NOTO, and Minus 30 over the past few years.

Hocco is one of the beneficiaries of this shift. The Chona family, which once owned the national ice cream brand Havmor before selling it in 2017, launched Hocco in 2019 after the expiry of their non-compete clause, officially starting operations in 2023.

Despite competing in a multibillion-dollar market long dominated by legacy players like Hindustan Unilever (HUL), Amul, and Vadilal, these newer entrants have managed to carve out a niche. Hocco, with its mass-market positioning, reported Rs 200 crore in revenue in FY24 and is aiming for Rs 500 crore in FY25. Go Zero, positioned in the mid-premium segment, is eyeing Rs 33 crore in FY25. Walko Foods, the parent company of NIC Ice Creams, posted Rs 170 crore in revenue in FY23, although updated figures are yet to be disclosed.

In FY25, the industry is projected to be worth north of $5 billion, according to the Wazir Advisors report, driven by domestic brands expanding beyond metro cities and the growing presence of international players. To capitalise on this momentum, HUL is spinning off its ice cream business, which includes brands like Kwality Wall’s, into a separately listed entity.