Ice Cream Brand Hocco’s Valuation Hits INR 600 Cr With Backing From Chona Family, Sauce.vc

Ahmedabad-based ice cream brand Hocco has reportedly raised INR 100 Cr ($12 Mn) in a fresh funding round led by its promoter group Chona family and existing investor Sauce.vc. 

The round also saw participation from angel investors, including film producers Ritesh Sidhwani and Farhan Akhtar.

As per an ET report, the primary capital infusion valued the company at INR 600 Cr post investment.

The funds will be used to expand the company’s manufacturing capacity, Hocco’s managing director Ankit Chona told ET. The eight-month-old brand expects to clock INR 200 Cr in revenue in the fiscal year ending March 2025.

Inc42 has reached out to the company’s founder for a comment on the development. The story will be updated based on the response.

Founded in 1944 by Satish Chona, Hocco began as an ice cream parlour in Karachi. In 2017, the Chona family sold their legacy brand Havmor to South Korean conglomerate Lotte for INR 1,020 Cr.

In 2019, they expanded their legacy food service business by launching Hocco.

In 2023, Hocco gained momentum. It claims to have more than 100 restaurants and eateries across India and one in the US, across casual dining restaurants, quick-service eateries and ice cream cafes. 

It aims to serve authentic recipes with a twist to new-age customers

With a legacy of nearly 80 years, its portfolio includes Hocco Eatery, 1944 The Hocco Kitchen, Hocco Ready-to-Eat, Huber & Holly, and Hocco Ice Cream.

As per ET, post the funding, consumer-focused investment firm Sauce.vc, known for backing new-age brands like Mokobara and The Whole Truth, now holds approximately a 10% stake in Hocco.

“We started in October last year. We were very bullish but did not expect this kind of response. What we predicted we’d be doing in the second or third year, we’ve ended up doing in the first year. Currently, our plant capacity is between 40,000-50,000 litres a day, and our original projection by May was 15,000 litres. By next summer, we will triple our capacity reaching 1.3 lakh litres a day,” Chona told ET.

In recent years, India’s ice cream industry has witnessed the emergence of several new-age brands, including Yummo, NIC, Go Zero, Frubon, and more and has been gaining traction from a lot of investors.

Earlier this year, Pune-based Walko Food, which operates ice cream brand NIC, secured an additional investment of $20 Mn (INR 165.8 Cr) from its existing backer Jungle Ventures as a part of its growth funding round.

Last year in May, NIC raised $11 Mn in a growth funding round led by Jungle Ventures.