Hangyo Ice Creams, a Mangaluru-based ice cream company, has raised Rs 211 crore in funding from private equity firm Faering Capital. The fresh capital will be used to boost production capabilities, accelerate new product development, and expand the company’s market presence, particularly in southern India.
This investment comes amid a growing trend of venture capital funding in the ice cream sector. Recently, Ahmedabad-based Hocco Ice Cream secured Rs. 100 crores in a round led by its promoter group, and Go Zero raised $1.5 million from existing investors.
“We are incredibly pleased to partner with Faering Capital for our next phase of growth,” said Pradeep Pai, Managing Director of Hangyo Ice Creams. “Their investment brings not only financial support but also strategic value, which will significantly enhance our expansion plans and reinforce our market leadership.”
Founded in 2003, Hangyo Ice Creams has established a strong presence in states like Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra, with around 350 distributors and 30,000 retailers. The company offers a variety of products, including cups, cones, sorbets, sticks, and tubs, available through general trade, modern trade, and online channels.
Hangyo Ice Creams operates two manufacturing facilities in Karnataka, with a combined production capacity of 120,000 litres of ice cream daily.
India’s ice cream industry, estimated to be worth $5 billion in 2024, has seen a rise in new-age brands such as Noto, Get-A-Way, Go Zero, Frubon, and Minus 30, challenging traditional players like Amul, Mother Dairy, Kwality Walls, and Cream Bell.
“Hangyo Ice Creams is a fast-growing and profitable consumer company that has consistently delivered high-quality products. Faering Capital is delighted to partner with Hangyo in their next stage of growth,” said Sameer Shroff, Managing Director of Faering Capital.