Sunday, July 14, 2024

Ahmedabad-Based Ice Cream Brand Hocco Raises Rs 100 Crore

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Hocco, a new-age ice cream brand from Ahmedabad, has successfully raised Rs 100 crore in a recent funding round. The brand is now valued at Rs 600 crore. The round was led by the Chona family, who are the brand’s promoters, along with existing investor Sauce VC. Bollywood filmmakers Ritesh Sidhwani and Farhan Akhtar also participated in this funding round.

Purpose of Fundraising

According to Ankit Chona, the Managing Director of Hocco, the funds will be used to expand the company’s manufacturing capacity. The brand aims to generate Rs 200 crore in revenue by the end of the fiscal year, March 2025. “We started in October last year with high hopes but did not expect this kind of response. What we predicted for our second or third year, we have achieved in the first year,” said Chona.

Currently, Hocco’s plant can produce between 40,000 to 50,000 liters of ice cream per day. With the new funds, they plan to triple this capacity to 1.3 lakh liters per day by next summer.

Leveraging Quick Commerce

Hocco plans to use quick commerce to extend its reach beyond Gujarat, which is its primary market. Chona mentioned that quick commerce has been a major growth channel since they started in February, with sales doubling every month. “Right now, most of our revenue comes from Gujarat and a bit from quick commerce. Since we started quick commerce in February, our sales on this channel have been doubling every month,” he said.

Ahmedabad Based Hocco Ice cream product varieties

Before next summer, Hocco plans to expand into Rajasthan, Maharashtra, and Delhi-NCR, while continuing to deepen its presence in Gujarat.

Doubling Sales in FY26

Hocco is optimistic about doubling its sales in FY26 compared to FY25. “Our plan is to deepen our presence in Gujarat and expand into nearby regions. Before next summer, we will launch in Rajasthan, Maharashtra, and Delhi-NCR,” said Chona.

He also highlighted the potential of quick commerce as a game-changer in the ice cream industry due to its ability to meet instant demand with rapid deliveries. However, he noted that quick commerce platforms carry many brands, which can limit the depth of stock-keeping units (SKUs) available.

In summary, Hocco’s recent funding will significantly boost its manufacturing capabilities and market reach, positioning it well for substantial growth in the coming years.

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