Ahmedabad-based ice cream brand Hocco raises ₹100 crore in funding at a valuation of ₹600 crore

Hocco, the Ahmedabad-based ice cream brand, has raised ₹100 crore at a ₹600 crore valuation. The funding will boost manufacturing capacity, support expansion into new markets, and leverage quick commerce to drive growth.

Hocco, an emerging ice cream brand based in Ahmedabad, has recently made headlines by raising ₹100 crore in a significant funding round, boosting its valuation to ₹600 crore. Established as a new-age player in the frozen dessert market, Hocco is gaining recognition for its innovative approach and rapid growth. This latest funding round, led by the Chona family, the brand’s promoters, and existing investor Sauce VC, with participation from Bollywood filmmakers Ritesh Sidhwani and Farhan Akhtar, marks a pivotal moment in the company’s expansion journey.

Hocco’s Expansion and Strategic Plans

Hocco, established in October last year, has experienced remarkable growth, quickly establishing itself in the competitive ice cream market. The recent infusion of ₹100 crore will be directed towards a major expansion of its manufacturing capabilities. Presently, Hocco’s facility manages a daily production of 40,000 to 50,000 liters of ice cream. With the new funding, the company aims to scale this capacity to 1.3 lakh liters per day by next summer, a move that aligns with its aggressive growth targets.

Expansion Initiatives

1. Manufacturing Facility Upgrade: The funds will enable the installation of advanced machinery and the expansion of production lines to increase output and efficiency. This upgrade will not only boost daily production but also enhance product consistency and quality.
2. Geographic Expansion: Hocco plans to strengthen its presence in Gujarat while venturing into new markets. The company is set to launch operations in neighboring regions such as Rajasthan, Maharashtra, and Delhi-NCR before next summer. This geographic expansion will help capture a broader customer base and tap into high-growth urban markets.
3. Distribution Network Enhancement: Investments will also be directed towards expanding Hocco’s distribution network. This includes setting up additional distribution centers and optimizing logistics to ensure timely delivery and broader market reach.
4. Product Innovation: The funding will support research and development efforts to introduce new flavors and product variations. Hocco aims to stay ahead of market trends by offering unique and innovative ice cream options that cater to diverse consumer preferences.
5. Marketing and Brand Building: A portion of the funds will be allocated to marketing campaigns and brand-building activities. Hocco plans to increase its visibility through digital marketing, partnerships, and promotional events to strengthen its brand presence in existing and new markets.

Through these strategic initiatives, Hocco is poised to become a major player in the ice cream industry, with an emphasis on scaling operations, expanding market reach, and continuing to innovate in its product offerings.

Purpose of Fundraising

The ₹100 crore raised in this funding round will be strategically invested to address Hocco’s growth and operational needs. The primary focus will be on scaling up manufacturing capabilities to keep pace with the rising demand for its products. Key areas of investment include:

• Facility Expansion: Upgrading the current plant and expanding physical space to accommodate increased production lines and machinery.
• Technology Integration: Incorporating advanced technologies to enhance production efficiency, quality control, and operational flexibility.
• Supply Chain Enhancement: Improving logistics and supply chain management to support higher production volumes and ensure timely delivery across regions.

Hocco aims to achieve a revenue target of ₹200 crore by March 2025, leveraging this investment to build on its strong market entry. Managing Director Ankit Chona remarked on the surprising speed of the brand’s success, which has surpassed initial forecasts for the first year.

Leveraging Quick Commerce

Quick commerce has emerged as a critical growth channel for Hocco. Since its introduction in February, this sector has contributed significantly to the company’s sales growth, with monthly sales doubling. Quick commerce’s role in Hocco’s strategy includes:

• Broadened Reach: Expanding beyond Gujarat to tap into high-demand urban areas through efficient and fast delivery systems.
• Customer Acquisition: Capturing a diverse customer base looking for convenience and instant access to premium ice cream products.
• Market Penetration: Using quick commerce to test and establish a presence in new markets before investing in physical retail locations.

Hocco’s use of quick commerce is instrumental in supporting its expansion into new territories such as Rajasthan, Maharashtra, and Delhi-NCR, where rapid delivery services can build a loyal customer base.

Future Outlook

Hocco is positioning itself for accelerated growth and market dominance. The company’s strategic plans include:

• Sales Projections: Doubling sales in FY26 compared to FY25 through expanded production, deeper market penetration, and new geographic entries.
• Geographic Expansion: Entering new markets while consolidating its presence in Gujarat, leveraging insights gained from quick commerce to inform expansion strategies.
• Industry Disruption: Capitalizing on the rapid delivery model of quick commerce to address growing consumer demand for instant gratification, while navigating the challenges of a crowded market with numerous brands.

Despite the opportunities, Chona acknowledged potential challenges, such as the saturation of quick commerce platforms and the impact on SKU availability. Nonetheless, Hocco is optimistic about its prospects and committed to driving growth through innovation, market expansion, and efficient operations.

With a robust funding boost and a clear expansion strategy, Hocco is well-positioned to capitalize on the growing demand for innovative ice cream products. The company’s focus on scaling production and utilizing quick commerce reflects its commitment to becoming a major player in the frozen dessert market.