Ice cream brand Hocco eyes sweeter spread with $10 million fundraise and pan-India ambition

Gujarat-based premium ice cream brand Hocco, founded by the Chona family, has raised $10 million (approx ₹85 crore) as part of a larger $20 million Series B round, co-led by the Chona Family Office and consumer-focused investor Sauce VC.

The capital will be used to increase production capacity, expand into new markets across India, and prepare for a potential intial public offering (IPO), promoter Ankit Chona said in an interview with Mint.

The Chona family, former promoters of Havmor Ice Cream—sold to South Korea’s Lotte Confectionery in 2017 for ₹1,020 crore—re-entered the market in 2023 with Hocco. Initially focusing on Gujarat and parts of western and northern India, the brand has been selling through retail stores, quick commerce platforms, and select ice cream parlours.

Also read: Havmor sees strong summer demand but input cost a challenge

With the latest infusion, Hocco has raised about ₹265 crore to date and plans to double production capacity from 1,30,000 litres per day to 2,50,000 litres, Chona said. 

“This will help double our revenues next year,” he added. Hocco closed FY25 with revenue of ₹220 crore.

While Chona confirmed plans for a public listing, he did not specify a timeline. The family currently retains an 80% stake, and the next round is expected to be led by an institutional investor.

Also read: Mint Primer: Will the summer of ’25 break last year’s records?

Rising in a crowded freezer

India’s ₹28,000 crore ice cream market is projected to exceed ₹42,700 crore by FY25, growing at an annual growth rate of 12-15%, according to consulting firm Technopak Advisors. The demand is driven by rising disposable incomes, flavour innovation, and expanding reach via quick commerce.

“India’s ice cream market is undergoing a transformation,” according to a 2024 note by Technopak Advisors. 

“New-age brands are finding traction by offering premium, preservative-free products that appeal to Gen Z and the upper-middle class.”

Hocco is entering a space dominated by Amul, Kwality Wall’s, Baskin Robbins, Natural’s, and Vadilal, while new-age competitors include Cold Love and Minus.30. 

Earlier this year, HUL spun off Kwality Wall’s (India) into a separate listed entity to unlock shareholder value and focus more sharply on the ice cream category. 

“India is a fast-growing ice cream market, and we’re privileged to back this world-class team on their next phase of growth,” said Manu Chandra, Founder of Sauce VC.

Also read: FSSAI may allow sweets, flowers, malt-based ingredients in ice creams

The Chona family’s legacy dates back to 1944, when it began with an ice cream shop in Karachi. Post-Havmor, the family has built a diversified investment portfolio, including stakes in Mokobara (luggage), Kreo (gaming accessories), Neuron Energy (EV batteries), and Vadham Tea, deploying an estimated ₹250 crore in over a dozen unlisted firms (excluding Hocco).