New Delhi, May 15 -- Hocco Foods Pvt Ltd, run by the Ahmedabad-based Chona family, has raised $10 million (Rs 86 crore) of the total intended $20 million as part of its Series B round, the company said Thursday.

The fundraising by Hocco, which previously built and divested the Havmor ice cream brand, is led by the Chona Family Office and existing venture capital investor Sauce.vc, the company said in a statement.

The announcement comes two months after VCCircle reported in March that Hocco was looking to raise up to Rs 200 crore for expansion.

The Chona family re-entered the ice cream industry with Hocco in 2023 after selling their 73-year-old Havmore brand to South Korea's Lotte for over $150 million in 2017. In 2023, Hocco raised around Rs 100 crore in funding led by Sauce.vc.

"This significant capital infusion will primarily be allocated toward increasing Hocco's production capacity and supporting the brand's ambitious expansion into new markets across India," the statement said.

Since its launch, Hocco Foods has ramped up its manufacturing capacity from 15,000 litres per day in 2023 to around 1.4 lakh litres per day currently with its single plant in Gujarat. The company plans to add another plant in northern India by February 2026, which will further increase its capacity to 2.2 lakh litres per day, Ankit Chona, promoter of the Hocco ice cream brand, told VCCircle in an interaction in March.

The fundraising will enable Hocco to strengthen distribution networks and supply chain infrastructure, aid product innovation and development of new ice cream flavours, and strengthen the firm's brand marketing initiatives.

"As the market is witnessing strong growth in India driven by improving disposable incomes and easier access through new-age channels such as quick commerce, we are privileged to partner this world-class team on their next leg of growth," said Manu Chandra, founder of Sauce.vc.

Hocco Foods' consolidated revenue is said to have grown sixfold year on year to around Rs 220 crore in 2024-25. For the current year, the firm aims to double its revenue to Rs 450 crore, with a target of Rs 800 crore next year.

According to analysts, the ice cream segment commands a multiple of around 4-5 times revenue. This would value Hocco around Rs 880-1,100 crore within two years of its launch, back-of-the-envelope calculations show.

Published by HT Digital Content Services with permission from VC Circle.