The company plans to use the fresh capital to enhance its production capabilities, accelerate new product development and extend its presence across key markets, primarily in southern India, it said on Thursday.
The fundraising comes at a time when new-age ice cream brands are increasingly attracting venture capital investments.
On June 10, ET reported that Ahmedabad-based 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, managing director, Hangyo Ice Creams. “Their investment brings not only 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 reinforcing our market leadership.”
Founded in 2003, Hangyo Ice Creams has established presence in states including Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana and Maharashtra, with about 350 distributors and 30,000 retailers.
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It offers a suite of products in various flavours and formats, including cups, cones, sorbets, 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 about $5 billion this year, has seen a surge of new-age brands over the past few years. Emerging players 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 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, potentially setting the stage for a future sale.
“Hangyo Ice Creams is a fast growing and profitable consumer company that has consistently delivered high quality products driven by state-of-the-art manufacturing, wide distribution and strong customer love. Faering Capital is delighted to partner with Hangyo in their next stage of growth,” said Sameer Shroff, managing director, Faering Capital.