Hocco Raises $10 Million in Series B Funding Round
Hocco, a premium ice cream brand, has successfully secured $10 million as the initial part of its $20 million Series B funding round, co-led by promoter Chona Family Office and the consumer-focused venture capital firm Sauce VC. This funding comes within a year of the company based in Ahmedabad securing $12 million in its Series A round, which was also with the same investors, valuing the company at Rs 600 crore ($70 million).
Expansion Plans with New Funding
The company anticipates closing the remaining portion of this funding round later this year. The newly acquired funds will be utilised to enhance Hocco’s manufacturing capabilities, bolster distribution channels, and facilitate entry into new markets throughout India. Additionally, a segment of the capital will be dedicated to innovating new products and brand marketing initiatives.
Background of Hocco
Hocco was founded by the Chona family, who were formerly the owners of the well-known ice cream brand Havmor. Hocco provides a variety of flavours inspired by both local and global tastes, serving customers through retail, quick service restaurants (QSR), and quick commerce platforms.
Revenue Goals and Current Performance
Hocco aims to achieve a revenue target of Rs 500 crore by FY25. According to various sources from startup data intelligence platforms, the company reported revenues of Rs 32.38 crore in FY24, coupled with a loss of Rs 20.23 crore.
Competitive Landscape
The ice cream brand faces competition from established legacy players such as Amul, Vadilal, and Hindustan Unilever (HUL), along with modern brands including Walko Foods’ NIC, Hangyo, Go Zero, and NOTO Ice Cream. Notably, in February 2024, NIC raised $20 million in a funding round led by Jungle Ventures, following an $11 million raise from the same investor the previous year. Similarly, Hangyo secured $25 million (approximately Rs 211 crore) from Faering Capital last year, while NOTO and Go Zero have also begun their fundraising efforts.