The consumer-focused venture capital company Sauce VC and promoter Chona Family Office are co-leading the $20 million Series B round for premium ice cream brand Hocco, which has received $10 million as the first tranche.
The Ahmedabad-based startup has had a new round within a year. At a valuation of Rs 600 crore ($70 million), it raised $12 million from the same investors in its Series A round.
According to the company, the round's second close is anticipated later this year. The additional funding will be used to increase Hocco's production capacity, fortify its distribution systems, and penetrate new Indian markets. Additionally, some of the funds will go into brand marketing and the creation of new products.
Hocco, a retail, QSR, and quick commerce company founded by the Chona family, who previously owned the iconic ice cream brand Havmor, offers a variety of flavors inspired by both local and international cuisine.
The company wants to make Rs 500 crore by the end of FY25. TheKredible, a startup data intelligence platform, claims that it made just Rs 32.38 crore in FY24 and lost Rs 20.23 crore.
Hocco faces competition from modern ice cream brands including Walko Foods’ NIC, Hangyo, Go Zero, and NOTO Ice Cream, in addition to established competitors like Amul, Vadilal, and Hindustan Unilever (HUL). A year after raising $11 million under the direction of the same investor, NIC raised $20 million in a fresh investment round in February 2024, led by Jungle Ventures.
