Ice cream brand Hocco has successfully secured ₹100 crore (approximately $10.7 million) in its Series C funding round, led by existing investor Sauce.vc. This new capital injection elevates the company's pre-money valuation to a significant ₹2,500 crore. The funds are earmarked for a major expansion of its manufacturing capabilities and a broader geographical footprint across India.
Fueling Production and Expansion
Hocco plans to use the fresh capital to significantly augment its manufacturing capacity, aiming to increase daily production from 2.5 lakh litres to 4 lakh litres. A new manufacturing plant in Panipat has already commenced operations to help meet this goal. The company is also looking to establish another plant in South India next year to cater to growing demand.
Alongside production enhancements, the Ahmedabad-based startup is pursuing an aggressive geographical expansion strategy. The brand has recently launched in markets like Telangana and Chennai through retail channels and in Karnataka via quick commerce. This tailored approach allows Hocco to adapt its distribution model to suit consumption preferences in different regional markets.
Strong Financial Growth and Future Outlook
The company's rapid growth is reflected in its strong financial performance, closing the last fiscal year with revenues of ₹532 crore. This figure surpassed initial projections, driven by a stellar final quarter and operational improvements made during the off-season. Founder Ankit Chona noted that the team did not initially envisage such rapid growth when the business started.
Looking ahead, Hocco has set an ambitious revenue target of ₹900 crore for the current fiscal year, FY27. A key objective alongside this revenue growth is to achieve EBITDA breakeven, a significant milestone for the young company. This financial discipline demonstrates a clear path toward sustainable profitability while scaling its operations nationwide.
A Legacy Reimagined for the Modern Market
Hocco was founded in 2023 by the Chona family, who possess a deep legacy in the ice cream industry. The family previously owned the iconic Havmor brand for decades before selling it to Lotte Confectionery in 2017. Hocco represents their strategic re-entry into the market after the expiration of a non-compete clause.
The brand effectively leverages a multi-channel distribution network to reach a wide consumer base. While general trade constitutes the largest share of sales at 75%, quick commerce platforms contribute a growing 20%. This is complemented by a network of 200 self-owned parlours and over 3,300 pushcarts across the country.
Strategic Vision and Long-Term Ambitions
This latest funding round serves as a stepping stone for Hocco's larger ambitions for its next phase of growth. The company is already preparing for a more substantial private equity round, potentially raising between ₹400 to ₹500 crore in the near future. This future capital will be crucial for fueling its long-term expansion and solidifying its market presence.
The ultimate goal for the rapidly growing brand is to go public within the next three years. This planned initial public offering (IPO) signals strong confidence from the leadership in Hocco's business model and its potential for sustained growth. The move would position Hocco among the few listed players in the Indian ice cream sector.
The ₹100 crore investment marks a pivotal moment for Hocco, providing the necessary resources to scale production and expand its market reach significantly. With a strong foundation rooted in industry legacy and a clear vision for the future, the company is well-positioned to challenge established competitors. This strategic funding reinforces Hocco's trajectory to become a dominant force in India's competitive ice cream industry.