The company plans to use the fresh capital to enhance its production capabilities, accelerate new product development and expand its presence in key markets, mainly in southern India, it said on Thursday.
The fundraising comes at a time when new ice cream brands are attracting more and more venture capital investments.
On June 10th, ET reported that Ahmedabad-based ice cream shop Hocco Ice Cream had raised Rs 100 crore ($12 million) in a round led by its promoter group, the Chona family, along with existing investor Sauce VC. Similarly, on June 19, Go Zero secured $1.5 million from its existing investors, including DSG Consumer Partners, Saama Capital and V3 Investors.
“We are incredibly pleased to partner with Faering Capital for our next phase of growth,” said Pradeep Pai, CEO of Hangyo Ice Creams. investment Not only does it bring financial support, but also a wealth of experience and strategic value to our company. This partnership will greatly enhance our expansion plans, driving growth and strengthen our market leadership.”
Established in 2003, Hangyo Ice Creams has an established presence in states like Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana and Maharashtra, with around 350 distributors and 30,000 retailers.
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Hangyo Ice Creams offers a range of products in various flavours and formats, including cups, cones, straws, sticks, tubs, distributed through general trade, modern trade and online channels. Hangyo Ice Creams operates two Manufacturing facilities in Karnataka, collectively producing 120,000 litres of ice cream daily.
India’s ice cream industry, estimated to be worth around $5 billion this year, has seen a boom in new-generation brands in recent years. Start-ups such as Noto, Get-A-Way, Go Zero, Frubon and Minus 30 are vying for market share in a sector traditionally dominated by legacy brands such as Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls and the Jaipuria group’s Cream Bell.
On April 5, ET reported that Hindustan Unilever was considering the option of spinning off its ice cream business into a separate unit, which could set the stage for a future sale.
“Hangyo Ice Creams is a profitable and fast-growing consumer company that has consistently delivered high-quality products through state-of-the-art manufacturing, wide distribution and strong customer love. Faering Capital is thrilled to partner with Hangyo in its next stage of growth,” said Sameer Shroff, CEO of Hangyo. Capital of Faering.
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