Ice cream brand Hangyo scoops up $25 Mn from Faering Capital

Ice cream brand Hangyo has raised $25 million (around Rs 211 crore) from Faering Capital. This is one of the largest venture funding for an ice cream brand in India ever.

Hangyo will use the capital to improve its production capabilities, speed-up new product development and expand its presence across key markets, primarily in South India, the firm said in a press release.

Founded in 2003 by Pradeep Pai and Dinesh Pai, Hangyo sells cups, cones, sorbets, stick ice-creams, tubs and kulfis across general trade, modern trade and online channels including quick commerce apps.

The firm has a strong presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana and Maharashtra with more than 350 distributors and over 30,000 retail footprints. It also claims to have served over 3 million consumers till February this year.

While Hangyo is yet to file its annual financial report for FY24, its revenue from operations grew 50% to Rs 233 crore in FY23. The firm’s profit spiked 9X to Rs 5.8 crore during the same period.

Since May 2023, a clutch of new age and established ice cream brands such as Hocco, Go Zero, and NIC managed to raise substantial money. While Hocco raised $12 million from Chona family and others, NIC raised $31 million across two rounds. Mumbai-based Go Zero also raised two funding rounds worth $2.5 million.

Notably, Mangaluru-based Hagyo has raised a new round after more than a decade. In August 2013, it raised $5 million from Capvent Partners. In the ongoing calendar year, several established brands have raised their external funding or after a long gap. For context, Unimech Aerospace raised $30 million in its maiden fundraise from Steadview Capital and others in July. The list includes workspace solution provider Incuspaze, ethnic wear brand Libas, consumer electronics startup Indkal, and performance wear brand TechnoSport.