Ice-cream start-ups scoop up funding, heat up action with different serves

Cool new flavours and start-ups with unique business models were seen at the recently concluded Indian Ice Cream Expo in Gandhinagar. Take Ice Cream Junction, a niche ice-cream brand floated recently by the Choudhary brothers from Pali in Rajasthan. 

“We are focussed on selling preservative free high-fat ice-creams to Gen-Z. These ice-creams have a shelf-life of just 2.5 months,” said 33-year-old Nirmal Choudhary who had attended the Expo seeking franchisees to partner their growth.  

Shaking it up

The Choudhary brothers represent a new breed of entrepreneurs looking to scoop up a healthy share of the rapidly growing ice-cream market in India. “In the last one year, a lot of private funding has poured into the Indian ice cream industry. So, there is a lot of scope for us to get similar funding. We are currently in talks with investors in the US to expand our ice-cream business to the entire western region including Haryana, Rajasthan and Gujarat,” said Choudhary.  The brothers, who are into milk processing, forayed into the ice-cream manufacturing space a month ago with a 1,000 litres per day ice-cream unit, offering flavours such as Pink Guava, Sea Salt Caramel, New York Cheesecake and Baklawa Delight.

“The ice-cream market in India is fast attracting the upper middle-class customers who have larger pockets. Our ice-creams are premium and cost almost as much as a gelato,” said Choudhary. The start-up which operates a 30,000 litres per day milk processing unit, recently opened its first ice-cream store near Jodhpur town.

Sudhir Shah, president of Indian Ice-Cream Manufacturers Association (IICMA), says, “The biggest story in the ice-cream industry in India is about city-based brands going national. The industry has been growing at 12-15 per cent per annum and it has generated a lot of interest among private investors and foreign players. A lot of start-ups and mid-sized entities operating in ice-cream space have attracted private investors. It is also a win-win situation for mid-sized ice cream players who are looking to expand to other parts of the country and are looking for funds.”

New entrant in the ice-cream space in Gujarat, Hocco has also attracted funds and is looking to quadruple its capacity from the current 40,000 litres per day. The Ahmedabad-based brand is operated by the Chona family who sold their Havmor brand to South Korean Lotte Confectionery in 2017, and thus know the ropes. “We have started big, unlike other start-ups. We recently attracted ₹100 crore worth of funds which will be used to market the brand and expand it into other territories. We have already launched in Maharashtra and Rajasthan and we are entering Delhi in a big way. This year itself we have targeted to clock ₹200 crore worth of revenue,” said Ankit Chona, Managing Director of Hocco ice-creams.

Dollops of funds

Neha Singh, CEO and CO-Founder of data firm Tracxn, says, “Since 2019, the ice cream industry in India has experienced steady growth in funding, reaching its peak in 2024. The segment witnessed $26.5 million in 2024 year-to-date (YTD) making it the highest funded year in this segment. Notably, 2024 YTD alone accounts for more than 74 per cent of the total funding raised in the last five years in this segment.“

According to Tracxn, Hangyo, an ice-cream brand from Mangaluru, has scooped $25 million in a private equity round in 2024. NOTO, a direct-to-consumer ice-cream brand, too has got a big serving of funds accumulating $4.58 million through four successive rounds. Get-A-Way, an online D2C healthy ice cream brand has secured $3.5 million in its seed stage round. 

“The growth of the ice-cream market in India can be attributed to changing consumer preferences towards premium, artisanal, and healthier options, driven by urbanisation and rising disposable income. The proliferation of modern retail outlets, e-commerce platforms, and quick commerce services, which have improved product accessibility and convenience; and the emergence of innovative brands offering unique flavors, fusion creations, and healthier alternatives to cater to evolving consumer demands,” Singh said. 

It’s sweet tidings for ice-cream makers.