Faering Capital has contributed $25 million, or approximately Rs 211 crore, to the ice cream brand Hangyo. This represents one of the biggest venture funding deals ever for an Indian ice cream company.
According to a press release from the company, Hangyo plans to use the funds to strengthen its production capabilities, expedite the development of new products, and increase its market share in important areas, mainly in South India.
Pradeep and Dinesh Pai founded Hangyo in 2003. The company offers cups, cones, sorbets, stick ice creams, tubs, and kulfis through modern trade, online channels, and quick commerce apps.
With more than 350 distributors and more than 30,000 retail locations, the company is well-represented in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra. Additionally, as of February of this year, it asserts to have served over 3 million customers.
Although Hangyo has not yet submitted its FY24 annual financial report, its operating revenue increased by 50% to Rs 233 crore in FY23. Within that same time frame, the company’s profit increased 9X to Rs 5.8 crore.
A number of modern and well-known ice cream brands, including NIC, Go Zero, and Hocco, have raised a significant amount of money since May 2023. NIC raised $31 million over the course of two rounds, whereas Hocco raised $12 million from the Chona family and other donors.
Additionally, Go Zero, based in Mumbai, raised $2.5 million in two funding rounds.
Remarkably, after over ten years, Mangaluru-based Hagyo has launched a fresh fundraising campaign. August 2013 saw $5 million raised from Capvent Partners. After a protracted hiatus, a number of well-known brands have increased their external funding in the current calendar year. For background, in July, Steadview Capital and other investors contributed $30 million to Unimech Aerospace’s first fundraising campaign. Incuspaze, a workspace solution provider, Libas, an ethnic wear brand, Indkal, a consumer electronics startup, and TechnoSport, a performance wear brand, are on the list.
