Ahmedabad-based ice cream brand Hocco raises Rs 100Cr at a valuation of Rs 600 crore

Ahmedabad-based new-age ice cream brand Hocco has raised Rs 100 crore in a funding round at a valuation of Rs 600 crore.

Chona family, the brand's promoters, and existing investor Sauce VC led the round, with participation from Bollywood filmmakers Ritesh Sidhwani and Farhan Akhtar.

What is the purpose of fundraising?

According to MD Ankit Chona, the raised funds will be used to expand the company's manufacturing capacity. 

The brand expects to generate Rs 200 crore in revenue by the end of the fiscal year, March 2025.

 "We started in October last year. We were very bullish but did not expect this kind of response. What we predicted we’d be doing in the second or third year, we’ve ended up doing in the first year," said Chona.

Currently, Hocco's plant capacity is between 40,000-50,000 liters per day, which they plan to triple to 1.3 lakh liters a day by next summer.

Leveraging quick commerce

Hocco aims to leverage quick commerce to expand its reach beyond Gujarat, its primary market.

Chona said that quick commerce has been a significant growth channel since they started in February, with sales doubling every month.

 "Right now, our revenue is mainly from Gujarat and a little bit of quick commerce. We started quick commerce in February, and since then our sales on the channel have been doubling every month," he said.

Hocco plans to penetrate deeper into Gujarat and expand into nearby geographies such as Rajasthan, Maharashtra, and Delhi-NCR before next summer.

Doubling sales in FY26

Hocco is optimistic about doubling its sales in FY26 compared to FY25. "The way we plan to do that is to penetrate deeper into Gujarat and expand into nearby geographies. Before next summer, we will launch in Rajasthan, Maharashtra, and Delhi-NCR," said Chona.

He also emphasized the potential of quick commerce as a significant disruptor in the ice cream industry due to its ability to meet instant demand through rapid deliveries. However, he noted that quick commerce platforms carry numerous brands, which can limit the depth of stock-keeping units (SKUs) available.