Alternative dairy startup 1.5 Degree raises $1 Mn in pre-Series A led by 35North Ventures

Alternative dairy startup 1.5 Degree has raised $1 million in a pre-Series A round led by 35North Ventures’ India Discovery Fund II. 

The funding will be used to scale manufacturing, expand institutional partnerships, and enter new cities including Mumbai, Pune, Bengaluru, Hyderabad, and Delhi.

Operated by Natturz Bio Kontrol Pvt Ltd, 1.5 Degree focuses on the institutional food service market, supplying plant-based dairy and frozen dessert products to corporate cafeterias, hotels, educational institutions, and large dining operations. The firm partners with food service providers such as Compass Group and Sodexo.

Its product portfolio includes plant-based milk, yogurt, tofu, cooking cream, gelatos, frozen desserts, smoothie yogurt bowls, and oat-milk-based beverages. The company also operates in-institution QSR formats and supplies products through long-term B2B contracts.

1.5 Degree uses proprietary processing technology to address taste and flavour challenges commonly associated with plant-based dairy products tailored for Indian consumers. The company claims its products result in significantly lower emissions and water usage compared to traditional dairy.

The brand derives nearly 80% of its revenue from institutional contracts, offering predictable and recurring revenue through volume-based agreements and integrated supply chain operations. It is currently operational across Bengaluru, Pune, and NCR.

While remaining B2B-focused, 1.5 Degree has also started expanding into direct-to-consumer channels through premium retail outlets, experience centres, and cloud kitchens via food delivery platforms.