Ice cream brand Hangyo has successfully raised $25 million (approximately Rs 211 crore) from Faering Capital, marking one of the largest venture funding rounds for an ice cream brand in India to date.
The newly acquired capital will be directed towards enhancing Hangyo’s production capabilities, accelerating new product development, and expanding its market presence, particularly in South India. The company shared these plans in a recent press release, signalling its intent to strengthen its foothold in the competitive ice cream industry.
Founded in 2003 by Pradeep Pai and Dinesh Pai, Hangyo has steadily built a diverse portfolio of ice cream products, including cups, cones, sorbets, stick ice creams, tubs, and kulfis. These products are distributed across general trade, modern trade, and online channels, including popular quick commerce platforms.
Hangyo’s distribution network is particularly robust in South India, with a significant presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra. The brand boasts over 350 distributors and more than 30,000 retail points, having served over 3 million consumers as of February this year.
Financially, Hangyo has demonstrated strong growth. While the company has yet to file its annual report for FY24, its revenue from operations saw a 50% increase to Rs 233 crore in FY23. Additionally, the company’s profits surged by an impressive 9X to Rs 5.8 crore during the same period.
The latest investment comes at a time when several ice cream brands in India, both new and established, have successfully secured substantial funding. Since May 2023, brands like Hocco, Go Zero, and NIC have raised significant capital, with NIC leading the pack by securing $31 million across two rounds. Meanwhile, Hocco raised $12 million from the Chona family and others, and Go Zero completed two rounds worth $2.5 million.
Notably, this $25 million round marks Hangyo’s first major fundraising in over a decade. The Mangaluru-based brand last raised $5 million from Capvent Partners in August 2013. The current trend of established brands raising external funding after long intervals is evident across various sectors. For example, Unimech Aerospace secured $30 million from Steadview Capital and others in its first-ever fundraising round in July. Other companies like workspace solution provider Incuspaze, ethnic wear brand Libas, consumer electronics startup Indkal, and performance wear brand TechnoSport have also closed significant funding rounds in 2024.
Hangyo’s latest funding round positions the brand to capitalize on its existing strengths and explore new opportunities in the rapidly evolving Indian ice cream market.
