Karnataka-Based Hangyo Ice Cream Bags Rs 211 crore from Faering Capital

Hangyo, an ice cream company, has raised $25 million (about Rs 211 crore) from Faering Capital. This is one of the largest venture capital investments for an ice cream brand in India.

Hangyo plans to use the funds to increase its production capacities, accelerate new product development, and extend its presence in important regions, including South India, according to a news statement.

“We are incredibly pleased to partner with Faering Capital for our next phase of growth,” stated Pradeep Pai, Hangyo Ice Creams’ Founder and MD, in a statement. “Their investment not only provides financial support, but also a wealth of knowledge and strategic value to our business. “This partnership will significantly enhance our expansion plans, driving growth and reinforcing our market leadership,” he added.

Following this round of fundraising, Faering Capital owns a 24% share in the ice cream company.

Related: Dairy Brand Country Delight Gets Fresh Rs 70 crore Funds in Debt

Hangyo, founded in 2003 by Pradeep and Dinesh Pai, sells cups, cones, sorbets, stick ice creams, tubs, and kulfis through traditional retail, modern retail, and internet channels, including rapid commerce apps.

The company has a substantial presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra, with over 350 distributors and 30,000 retail locations. It also claims to have served over 3 million customers until February of this year.

While Hangyo has yet to release its annual financial report for FY24, revenue from operations increased by 50% to Rs 233 crore in FY23. During the same time period, the company’s earnings increased by nine times to Rs 5.8 crore.

Notably, Mangaluru-based Hagyo has raised additional funds after more than a decade. Capvent Partners invested $5 million in the company in August 2013. Several established brands have raised external money this year or after a long period of time.

Hangyo’s investment adds to the expanding list of ice cream brands that have lately raised funds. Recently, Ahmedabad-based Hocco Ice Cream raised $12 million from the Chona family and Sauce VC.

NIC raised $20 million from Jungle Ventures. Mumbai-based Go Zero secured $1.5 million from previous investors DSG Consumer Partners, Saama Capital, and V3 Investors.

This is Faering Capital’s sixth investment, and the second in a consumer brand, from its $346 million Fund 3. The venture capital business has secured more than $720 million in funding across three funds and has collaborated with 31 firms. Following this investment, Faering currently has a 24 percent share in Hangyo.