Ahmedabad-based Hocco, an ice cream brand, is gearing up to significantly increase its production capacity by early 2025. This strategic move is supported by a recent infusion of $10 million (INR 85.56 Cr) as part of its ongoing $20 million Series B funding round, co-led by the Chona family office and Sauce.vc. The company intends to utilize these funds to not only double its ice cream production but also strengthen its infrastructure and expand its market presence across India.
According to Ankit Chona, Founder and Managing Director of Hocco Ice Creams, the company's current production capacity is approximately 1.3 lakh liters per day, and the goal is to scale this up to 2.5 lakh liters per day by February of next year. This expansion is a core component of Hocco's broader strategy to capture a larger share of the rapidly growing Indian ice cream market.
The additional capital will also be channeled towards strengthening Hocco’s cold-chain infrastructure and distribution networks. This is crucial for maintaining the quality of ice cream products and ensuring they reach consumers in optimal condition, especially as the company penetrates new and geographically diverse markets. Hocco is also investing in product innovation, with a focus on developing new and exciting flavors to cater to diverse consumer preferences.
Hocco's expansion plans include extending its reach beyond its current strongholds in Gujarat, Delhi NCR, Western UP, Rajasthan, MP, and Maharashtra. The company aims to launch across Uttar Pradesh and potentially enter Punjab and Chhattisgarh as well. To support this expansion, Hocco is scaling its retail footprint with nearly 200 distributors and over 250 member sales teams. The company has also begun opening company-owned experience zones, including parlors in Delhi.
Hocco has experienced significant success through quick commerce channels, which contribute 20% of its overall revenue, while the remaining 80% comes from general trade. This blended approach allows Hocco to cater to a wide range of consumers, from those seeking immediate gratification through quick commerce to those preferring traditional retail experiences.
The Chona family has a long history in the ice cream business, starting with Satish Chona, who founded an ice cream parlor in Karachi in 1944 under the 'Have More' banner. After selling their legacy brand, Havmor, to Lotte in 2017 for INR 1,020 crore, they re-entered the frozen dessert segment with Hocco in 2022. Today, Hocco operates under a growing house of brands, including Hocco Ice Cream, Hocco Eatery, 1944 The Hocco Kitchen, Hocco Ready-to-Eat, Huber & Holly, and health food brand phab, with a retail presence in over 10,000 outlets across India and one in the US.
Hocco's strategic initiatives align with the broader trends in the Indian food and beverage market. Industry estimates suggest that the market is poised to reach $68 billion by 2030, driven by rising disposable incomes and shifting consumer preferences towards premium and innovative food products. This favorable market environment has attracted significant investor interest, with companies like NOTO and Go Zero also raising substantial funding to fuel their expansion plans.
Hocco closed its first full financial year (FY25) with Rs 220 crore in revenue and is targeting Rs 420 – Rs 450 crore revenue for FY26. The company is currently in discussions to secure the second tranche of its Series B funding within the next four to six months, with participation expected from existing investors and potentially new global funds, including private equity firms. This additional funding will further solidify Hocco's position in the premium food segment and enable it to capitalize on the growing demand for indulgent and innovative treats.
