The ice cream brand Hocco has secured $10 million (INR 85.56 crore) in its Series B funding round, which has a total target of $20 million (INR 171.28 crore).

The round was jointly led by Sauce.vc and the Chona family office.

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The company intends to use the new capital mainly for expanding its production capacity and facilitating its entry into new markets throughout India.

In addition to concentrating on product innovation and the creation of new flavors, Hocco has the goal of bolstering its distribution networks and supply chain infrastructure.

In 1944, Satish Chona began his ice cream venture in Karachi under the ‘Have More’ brand. In 2017, after 73 years, the Chona family sold its legacy brand, now known as Havmor, to the South Korean conglomerate Lotte for INR 1,020 crore.

In 2022, after a four-year period, the Chonas introduced Hocco, an ice cream brand that grew to encompass various brands including Hocco Eatery, 1944 The Hocco Kitchen, Hocco Ready-to-Eat, Huber & Holly, and phab.

Hocco asserts that it operates over 10,000 retail outlets in India and one in the US, spanning casual dining, quick-service, and ice cream segments.

The company, now based in Ahmedabad, raised INR 100 Cr in a new funding round last June, which resulted in a post-investment valuation of INR 600 Cr.

Hocco is in competition with brands like Yummo, NIC, Get-A-Way, Minus 30, and Frubon.

This latest fundraising round coincides with a period when the increase in disposable income has resulted in greater demand for premium items such as ice creams, chocolates, and packaged foods.  India’s foods and beverages market is anticipated to reach $68 billion by 2030 due to the increasing demand.

As a result of the expanding market opportunity, investors have been drawn in, with ice cream manufacturers NOTO and Go Zero each raising INR 30 Cr in March to finance their growth.