India, Feb. 5 -- 1.5 Degree, Indias leading pioneers in alternative dairy platform by Natturz Bio Kontrol, has successfully closed a $1.0 million Pre-Series A funding round led by 35North Ventures India Discovery Fund-II. The investment will accelerate manufacturing scale-up, deepen institutional partnerships, and fuel geographic expansion to Mumbai, Pune, Bangalore, Hyderabad, and Delhimarkets representing nearly 60% of Indias institutional food service opportunity. India Discovery Fund, a SEBI accredited AIF and one of Indias largest early-stage funds, invests into top class founders with executional excellence and deep industry knowledge at their early stage of their companys journey.
1.5 Degree is creating a new category within Indias 18.9 trillion dairy market by bypassing consumer adoption challenges and focusing on institutional food service. Through strategic partnerships with global food service leaders Compass Group and Sodexo, 1.5Degree.co delivers a comprehensive portfolio of plant-based offeringsfrom premium gelatos and mass-market frozen desserts to frozen smoothie yogurt bowls and oat-milk refresher beveragesdirectly to corporate cafeterias, hotel chains, educational institutions, and large-scale dining operations across India, including via its own in-institution QSR formats. With a portfolio spanning gelatos, frozen desserts, milk, yogurt, tofu, cooking cream, smoothie yogurt bowls, and oat-milk refresher beverages, are building a complete alternative protein and nutrition replacement platform at scale.
1.5 Degree focuses on institutional decision-makers who prioritize health, sustainability, and operational efficiency over cultural preferences. The company has developed proprietary AI-aided processing technology that deactivates lipoxygenase enzymes, solving the long-standing off-flavour problem in plant-based alternatives for Indian markets. The result: oat-milk-based products specifically tailored for Indian palates, offering 72% lower GHG emissions, 80% less water consumption, and zero cholesterolwithout compromising on taste.
Indias institutional food service market now exceeds 50,000 crores annually. As corporate India increasingly embraces ESG mandates and employee wellness programs, demand for sustainable, health-conscious food options continues to accelerate. Traditional dairy incumbents have limited focus on institutional plant-based alternatives, while emerging startups remain largely consumer-focused creating a blue-ocean opportunity for platforms like 1.5 Degree that serve millions of everyday consumers within institutional ecosystemsshaping healthier, sustainable food choices where India eats daily.
1.5Degree.co has strategically positioned itself as a B2B-first platform, with nearly 80% of revenue derived from long-term institutional contracts. This business model delivers predictable recurring revenue with high switching costs driven by menu integration and operational dependencies. Volume-based contracts, API-driven ordering systems, and cold-chain partnerships enable seamless pan-India distribution.
While remaining institution-first, 1.5 Degree is also entering the D2C segment through premium retail parlours and experience centres, alongside cloud-kitchen expansion across Delhi, Mumbai, Bangalore, Pune, and Hyderabad via Zomato and Swiggy.
Vedansh Goyal, Co-Founder & CEO of 1.5 Degree, said: We are thrilled to announce the closing of our funding round. We founded 1.5 Degree to bring intentionality and sustainability to Indias institutional food service. The current dairy landscape is broken67% of milk is adulterated, 60% of Indians are lactose intolerant, yet alternatives cost 310x more and taste terrible. Our platform solves real institutional pain points: ESG compliance, employee wellness, cost optimization, and supply reliability. Were not just offering plant-based alternativeswere enabling Indias institutions to lead the sustainable food transition while delivering guilt-free indulgence people genuinely enjoy.
1.5 Degree was created to solve a systemic market failure, says Anagh Goyal, 20-year-old Co-Founder & CTO of 1.5 Degree and BITS Pilani Entrepreneur of the Year. With 35North Ventures coming on board early, were building with partners who share our long-term vision and conviction in the problem were solving. India today faces an impossible choice: compromise on sustainability, pay premium prices, or serve products customers reject. After three years of R&D, our patent-pending enzyme deactivation process delivers plant-based dairy tailored for Indian taste preferences.
Sunil Gurbaxani, Managing Partner at 35North Ventures India Discovery Fund-II, said: "We are thrilled to invest in 1.5 Degree.co as they are pioneers of institutional plant-based dairy in India. The founders bring exceptional execution discipline with bold visionexactly what this nascent category needs. 1.5 Degree's B2B-first approach addresses this reality head-on, targeting rational decision-makers who prioritize ESG compliance, employee wellness, and cost efficiency over cultural inertia. With proprietary technology solving taste challenges, strategic partnerships with dominant food service providers, and an asset-light scaling model, 1.5 Degree is positioned to become the category leader in India's institutional plant-based transition. We are confident that they will set the new standard for sustainable institutional food service across India and beyond."
Published by HT Digital Content Services with permission from FoodTechBiz.