Ahmedabad-based ice cream brand Hocco has raised INR 100 Cr (approximately $12 Mn) in a new funding round led by its promoter group, the Chona family, and existing investor Sauce.vc. The funding round also saw participation from notable angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar.
According to a report by The Economic Times (ET), this capital infusion values the company at INR 600 Cr post-investment. Hocco’s managing director, Ankit Chona, stated that the funds will be used to expand the company’s manufacturing capacity. The brand, just eight months old, aims to achieve INR 200 Cr in revenue by the fiscal year ending March 2025.
Hocco’s Journey and Expansion
Hocco was originally founded in 1944 by Satish Chona as an ice cream parlour in Karachi. The Chona family sold their legacy brand, Havmor, to South Korean conglomerate Lotte for INR 1,020 Cr in 2017. In 2019, they launched Hocco to continue their legacy in the food service business.
By 2023, Hocco has expanded significantly, boasting over 100 restaurants and eateries across India and one in the US. These include casual dining restaurants, quick-service eateries, and ice cream cafes. The brand aims to serve authentic recipes with a twist to appeal to new-age customers.
Hocco’s portfolio now includes various segments such as Hocco Eatery, 1944 The Hocco Kitchen, Hocco Ready-to-Eat, Huber & Holly, and Hocco Ice Cream.
Investment and Growth
Following the latest funding round, consumer-focused investment firm Sauce.vc, known for backing new-age brands like Mokobara and The Whole Truth, holds approximately a 10% stake in Hocco.
“We started in October last year and were very bullish, but we did not expect this kind of response. What we predicted we’d be doing in the second or third year, we’ve ended up doing in the first year. Currently, our plant capacity is between 40,000-50,000 litres a day, and our original projection by May was 15,000 litres. By next summer, we will triple our capacity to reach 1.3 lakh litres a day,” Chona told ET.
Industry Context
India’s ice cream industry has seen the rise of several new-age brands like Yummo, NIC, Go Zero, and Frubon, attracting significant investor interest. Earlier this year, Pune-based Walko Food, which operates the NIC ice cream brand, secured an additional investment of $20 Mn (INR 165.8 Cr) from Jungle Ventures as part of its growth funding round. In May 2022, NIC had raised $11 Mn in a growth funding round led by Jungle Ventures.
The surge in investments in the ice cream sector underscores the growing demand and potential for innovation within the industry, with Hocco positioning itself as a key player poised for significant growth.
