Ice Popsicle Brand Skippi Hits Rough Patch After Shark Tank Boom

Shark Tank-famed ice popsicle startup Skippi is grappling with a sharp slowdown after rapid expansion, with its FY25 financials and audit notes pointing to deeper operational and regulatory stress.

Employees have faced salary delays, PF dues have not been deposited for nearly two years, and distributors say they are stuck with unsold inventory. 

As a result, Skippi’s operating revenue plunged 59% to INR 8.2 Cr in FY25 from INR 20 Cr in the previous fiscal year.

Founded in 2021 by Ravi and Anuja Kabra, the Hyderabad-based startup positioned itself as India’s first exclusive ice popsicle brand offering preservative-free ‘chuskis’. 

After its appearance on Shark Tank India Season 1 in December 2021, Skippi’s revenue jumped to INR 15.4 Cr in FY23 from around INR 2.5 Cr in FY22, driven by a surge in brand recall and distributor interest.

The startup, which also sells cream rolls and corn sticks, rapidly expanded its offline presence to over 14,000 outlets nationwide from about 1,200 outlets, while also selling on quick commerce and ecommerce platforms like Zepto, Blinkit, Swiggy Instamart, Amazon and Flipkart.

According to media reports, it was also eyeing an SME IPO and INR 300 Cr revenue in the next few years. However, sources said the post-Shark Tank demand surge was short-lived.

Expansion Backfires, Distributors Stuck 

“After the Shark Tank episode, there was a huge demand for Skippi’s products nationwide. This pushed it to expand its distributor network extensively in a short span of time,” one of the sources said. 

As the initial hype faded, sales slowed, leaving distributors with excess inventory.

“I’ve been trying to contact the company for the last one year. No one is picking up the calls. We don’t know what to do with this unsold stock,” a Skippi distributor told Inc42.

In a statement, a Skippi spokesperson told Inc42 that the rise in demand brought operational challenges with it. The startup expanded rapidly across India, including tier II & III cities, building distribution networks and hiring manpower beyond metro markets. 

“However, with ice pops being a single-SKU business at the time, Skippi was unable to bring down sales and distribution costs. As a result, several tier II & III markets underperformed, with the sales teams failing to scale efficiently,” the startup said. 

Subsequently, Skippi restructured its distribution strategy, choosing to focus primarily on larger cities instead of deeper expansion into smaller markets.

The slowdown forced the startup to sharply cut costs to become “fundamentally stronger and profitable”. Skippi’s employee benefit expenses fell to INR 5.3 Cr in FY25 from INR 11.5 Cr in FY24, indicating significant layoffs or closure of business lines.

However, the startup claims that its business is back on track now. It envisions to become a large category player in ice popsicle segment in India and post a revenue of INR 100 Cr to INR 150 Cr in the next financial year.

PF Delays, Factory Without Licence 

Besides the operational challenges, the startup also ran into compliance trouble. Former and current employees said that Skippi failed to deposit PF contributions for nearly two years, with payments of lakhs of rupees still pending. 

As per the latest EPFO data, Skippi deposited PF dues for calendar year 2023 only in September 2025. At the end of FY25, it had PF payables of about INR 95 Lakh. 

“Last year we did see some delays in meeting compliance but currently more than 80% of the compliance has now been paid out and we are closing all the delayed ones each month,” Skippi said.

Its auditor also flagged regulatory issues at Skippi’s Shamshabad factory. According to the audit report, the unit was set up in a ‘Green Zone’, making it ineligible for a factory licence and pollution clearance. 

It remains unclear how long the facility operated without approvals and if the startup has since shifted the unit to a compliant location. In the statement, Skippi said that it is in the process of setting up a new manufacturing unit in a larger industrial location in Hyderabad. However, it said this is being done to meet the rising demand.

The FY24 audit report also flagged multiple compliance and liquidity issues. The auditor noted that Skippi failed to repay short-term borrowings of INR 2.6 Cr by December 31, 2023 due date, with the amount outstanding as of March 31, 2024. However, the startup was not classified as a wilful defaulter. 

The note also highlighted irregular deposit of statutory dues, including profession tax, TDS and employee contributions, with unpaid PF dues of INR 93.71 Lakh and ESI dues of INR 13.32 Lakh as of March 31, 2024. Several tax liabilities were either delayed or remained unpaid as of FY24. 

Separately, the auditor noted that as of March 31, 2025, inventory worth INR 4.69 Cr and fixed assets worth INR 76 Lakh were not insured, exposing the startup to potential losses.

Amid the revenue slump, Skippi’s net loss narrowed to INR 6.3 Cr in FY25 from INR 12.9 Cr a year earlier, largely due to cost cutting. Its total expenses for the year declined 55.8% to INR 14.7 Cr from INR 33.3 Cr in FY24. 

Focus On Metros & International Markets 

Skippi claimed that it continues to expand its international presence, with shipments going to the US, Australia and New Zealand. The startup added that it is in advanced discussions with a large conglomerate in the Middle East for distribution of its products into the GCC region.

In India, it said its near-term focus remains on strengthening distribution in metro cities. For tier II & III markets, Skippi is following a distributor-sales channel (DSC) model, under which distributors build and manage their own sales teams and are offered higher margins. 

Skippi claims that this model allows distributors to carry multiple brands while expanding Skippi’s reach without adding to its own fixed costs. 

Besides, it is also doubling down on quick commerce partnerships.

On capital requirements, Skippi said it is targeting a Series A round in mid-2026, which it said could be in the range of INR 30 Cr to INR 50 Cr. The startup said the capital would be used to improve market penetration, branding and distribution.

Notably, it raised INR 12 Cr in its extended pre-Series A funding round in June this year from Dubai-based family offices and angel investors..

Overall, the startup has raised more than $2.7 Mn till date from the likes of Venture Catalysts, Hyderabad Angels, among others.

Going ahead, Skippi plans to expand its portfolio by adding other impulse-led products in the coming years, with a focus on distribution, exports, and quick commerce channel.

Edited by Vinaykumar Rai