Hocco, the fast-growing ice-cream startup from India, has raised ₹115 crore in the second tranche of its Series B funding. With this latest fundraise, the company’s valuation has reached ₹2,000 crore. Founder and managing director Ankit Chona confirmed the development and explained how the company will use the new capital.
Hocco began its journey in 2022. In only two years, the company moved from launch to building a strong presence in multiple Indian states. It now competes with long-established brands in a market that demands scale, quality, and reliable distribution.
The Legacy Behind Hocco
Hocco may look like a new startup, but the family behind it knows the ice-cream business very well. The Chona family built and ran Havmor, a legendary ice-cream brand in India, before selling it. After the sale, Ankit Chona decided to create a new company with a modern approach and bold ambitions.
This background gives Hocco an edge. Investors trust the Chonas because they already proved their ability to build a successful ice-cream company once. The family also understands how to manage supply chains, cold storage, distribution, and retail partnerships in India’s complex market.
The Funding Journey
Hocco structured its Series B in two parts.
- In the first tranche, the company raised USD 10 million (around ₹85 crore). That round came from the Chona Family Office and Sauce VC, which co-led the investment. The company aimed to raise about USD 20 million in total during this Series B.
- In the second tranche, Hocco raised ₹115 crore. This pushed the total funding in the Series B round close to the company’s original target.
With this fresh money, Hocco has now raised around USD 30 million across its funding journey.
How Hocco Will Use the Funds
Hocco explained a clear plan for the ₹115 crore it just secured.
- Build a new plant in Sonipat
This plant will expand Hocco’s manufacturing footprint in North India. It will help the company serve Delhi and nearby states more efficiently. - Double the capacity of its Gujarat plant
Gujarat has been Hocco’s stronghold. By doubling capacity, the company can meet rising demand in western India and beyond. - Deploy defreezers in new markets
Ice-cream brands need cold storage at every level of distribution. Defreezers in retail stores ensure product freshness. Hocco will install thousands of them to strengthen its network. - Expand to more states
Hocco already operates in Delhi, Uttar Pradesh, Maharashtra, Chhattisgarh, Telangana, and Punjab. With the new funds, the company will add new states to its map. - Support working capital
Scaling fast requires heavy spending on inventory, logistics, and retailer payments. The fresh capital will provide breathing room for these needs.
Revenue Performance and Targets
Hocco ended FY25 with revenues of ₹220 crore. For a brand that launched only in 2022, this number shows extraordinary growth. The company earlier planned to reach around ₹400 crore revenue in the next fiscal year. However, its strong performance convinced the leadership to set a new target of ₹500 crore.
Founder Ankit Chona even said that the team never imagined crossing these numbers within just two years of launch. Hocco expects to record ₹300 crore in revenue in the first half of FY26 alone. Looking further ahead, the company has ambitions to reach ₹700 crore in revenue.
These figures tell a clear story: Hocco is not a small experiment. It has quickly become a serious challenger to established ice-cream companies.
Where Hocco’s Sales Come From
Hocco earns around 80% of its sales from general trade. General trade includes kirana shops, small retailers, and mom-and-pop outlets. These stores form the backbone of India’s FMCG distribution system.
Another 15% of Hocco’s sales come from quick commerce platforms such as Blinkit, Zepto, and Swiggy Instamart. Hocco believes this channel will grow rapidly in the future. The company aims for quick commerce to contribute 25% of its total sales in the coming years.
This mix shows balance. Hocco stays rooted in India’s traditional sales model while riding the growth wave of new-age commerce platforms.
The Jump in Valuation
Investors now value Hocco at ₹2,000 crore. The leap from its earlier valuation of about ₹600 crore after previous rounds shows how quickly the company’s story has evolved.
Why do investors feel confident enough to pay such a high valuation?
- Fast revenue growth: From ₹220 crore in FY25 to a projected ₹500+ crore in FY26, the numbers look strong.
- Strong category tailwinds: Ice-cream and frozen dessert sales in India continue to rise as incomes grow and urban lifestyles change.
- Infrastructure investments: Hocco is not only selling ice-cream, it is building large plants, defreezers, and logistics networks.
- Experienced founder team: The Chona family’s legacy makes investors feel more secure.
- Repeat investor trust: Existing backers like Sauce VC and the Chona Family Office keep increasing their stake.
Challenges That Hocco Faces
Ambition alone does not guarantee success. Hocco must tackle several challenges as it grows:
- Cold chain reliability: Ice-cream needs a flawless supply chain. Power cuts, delays, or mishandling can spoil stock and create losses.
- Margin pressure: Scaling up requires heavy spending on transport, electricity, packaging, and staff. Keeping profits healthy will be tough.
- Competition: Big brands like Amul, Kwality Walls, and Mother Dairy already dominate the market. Regional brands also fight for local loyalty.
- Geographic expansion: New states bring different consumer tastes, infrastructure issues, and regulatory requirements.
- Execution risk: Missing ambitious targets like ₹500 crore revenue could hurt investor trust.
- Capital intensity: Cold storage, plants, and distribution networks require constant capital. Hocco will need to keep raising or carefully manage its cash.
Strategic Moves That Can Define Hocco’s Future
Hocco’s leadership has a clear playbook for growth:
- Expand aggressively into new states to build nationwide presence.
- Increase production capacity in both Gujarat and Sonipat plants.
- Boost quick commerce share from 15% to 25% of revenue.
- Introduce innovative flavors to stand out in a crowded market.
- Strengthen branding and marketing to create emotional connections with consumers.
- Invest in backward integration such as dairy sourcing or packaging to lower costs in the long term.
The Market Context
India’s ice-cream market offers big opportunities. Rising disposable income, growing urban lifestyles, and younger consumer preferences drive demand for premium desserts. At the same time, quick commerce platforms make ice-cream more accessible to consumers at home.
However, the industry also suffers from high seasonality. Sales peak in summer but fall in monsoon and winter. To balance this, Hocco may introduce frozen desserts, cakes, and novelty products that sell year-round.
Why Investors Keep Backing Hocco
Investors like Sauce VC and the Chona Family Office see Hocco as more than just an ice-cream brand. They see a scalable consumer brand that could stand alongside India’s leading FMCG players.
The strong revenue numbers in just two years give them confidence. The founder’s track record reduces risks. The infrastructure investments create a competitive moat that smaller entrants cannot easily copy. For investors, Hocco looks like a brand that could deliver both scale and profitability in the long run.
Risks That Could Slow Down Growth
- Hocco may miss its ₹500 crore target if demand slows or operations struggle.
- Infrastructure failures in cold chain or power supply could cause losses.
- Rising costs of milk, sugar, electricity, or packaging could eat into margins.
- Competitive reactions from large players could pressure prices.
- Weather patterns like weak summers or extended rains could hit demand.
- Funding gaps could appear if capital inflows slow down.
What to Watch in the Next Year
Market observers will track:
- Whether Hocco actually reaches ₹500 crore in FY26 revenue.
- The commissioning of the Sonipat plant and expansion of the Gujarat plant.
- The share of quick commerce sales and whether it climbs to 25%.
- New product launches that can attract premium consumers.
- Partnerships with modern retailers and e-commerce platforms.
- Signs of profitability or at least stable margins.
Conclusion
Hocco’s story captures the spirit of India’s new consumer economy. In just two years, the company grew from launch to a ₹220 crore revenue business. Now it wants to hit ₹500 crore in the current fiscal. It has raised ₹115 crore in fresh funding and now stands at a ₹2,000 crore valuation.
The company combines legacy knowledge from the Chona family with the hunger of a new-age startup. Investors believe in its ability to scale. Consumers respond to its products. Yet, challenges remain, from competition to logistics costs.
If Hocco executes well, it could become one of India’s most celebrated consumer brands in the next decade. The next two years will prove whether it turns its sweet promise into lasting success.
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