Restaurant India News: Hocco Raises Rs 100 Cr to Expand Manufacturing and Targets IPO in 3 Years

Hocco has raised Rs 100 Cr (around $10.7 Mn) in its Series C funding round from existing investor Sauce.vc, taking its total funding to Rs 481 Cr, founder and MD Ankit Chona said. The company had previously raised Rs 115 Cr in May 2025 from Sauce.vc and the Chona family office. Following the latest round, its pre-money valuation has increased to Rs 2,500 Cr (around $267 Mn).

Hocco plans to utilise the capital to expand manufacturing capacity to 4 lakh litres per day, up from the current 2.5 lakh litres. The company has already operationalised a new manufacturing facility in Panipat and is planning another plant in South India next year. It is also evaluating contract manufacturing as demand continues to exceed supply.

The Ahmedabad-based company is expanding its distribution footprint, with a strong presence in North and Western India. According to Chona, the company is adopting region-specific strategies, expanding through retail channels in Telangana and Chennai, while leveraging quick commerce platforms in Karnataka and West Bengal. He added that Delhi NCR continues to be driven primarily by a pushcart-based distribution model.

Currently, Hocco operates around 200 self-owned parlours and restaurants, contributing 5 percent to total sales. General trade accounts for 75 percent of revenue, while 20 percent comes from quick commerce platforms such as Instamart, Blinkit, and Zepto. The brand also runs approximately 3,300 pushcarts, with plans to scale this to 5,000 by next summer.

Founded in 2023 by the Chona family, previously associated with Havmor before its sale to Lotte Confectionery in 2017 for Rs 1,020 Cr, Hocco marks the group’s re-entry into the ice cream category. Alongside its flagship brand, the company operates premium brand Huber and Holly with around 20 parlours, and kulfi brand Chillfi available on quick commerce platforms. The combined portfolio includes around 200 SKUs, with plans to expand through new product launches.

Financially, Hocco reported revenue of Rs 532 Cr in FY26, with an EBITDA loss of 10-12 percent, equivalent to around Rs 63 Cr. The company is targeting EBITDA breakeven in FY27 with a projected revenue of Rs 900 Cr.

Ankit Chona said, “As a percentage, we have more than halved our losses and this year… We’ll probably try and break even on the EBITDA front (in the current financial year).”

The company is also preparing for a public listing within the next three years and is planning to raise an additional Rs 400-500 Cr from private equity investors to support expansion.

Hocco operates alongside established brands such as Kwality Wall’s, Vadilal, Amul, Mother Dairy, and Havmor, as well as emerging players like NOTO, Naturals, and Go Zero. The company positions itself between legacy and new-age brands, combining scale with a differentiated product approach.