Mangaluru-based Hangyo Ice Creams has secured Rs 211 crore from private equity firm Faering Capital.
The company plans to use this new capital to boost its production capabilities, speed up new product development, and expand its presence in key markets, mainly in southern India.
This fundraising comes when new-age ice cream brands increasingly attract venture capital investments.
“We are incredibly pleased to partner with Faering Capital for our next phase of growth,” said Pradeep Pai, managing director, Hangyo Ice Creams. “Their investment brings not only financial support but also a wealth of experience and strategic value to our company. This partnership will greatly enhance our expansion plans, driving growth and reinforcing our market leadership.”
Founded in 2003, Hangyo Ice Creams has established a presence in states like Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra, with about 350 distributors and 30,000 retailers.
It offers various products in various flavors and formats, including cups, cones, sorbets, sticks, and tubs, distributed through general trade, modern trade, and online channels.
Hangyo Ice Creams operates two manufacturing facilities in Karnataka, producing 120,000 liters of ice cream daily.
India’s ice cream industry, estimated to be worth about $5 billion this year, has seen a rise in new-age brands. Emerging players like Noto, Get-A-Way, Go Zero, Frubon, and Minus 30 are competing for market share in a sector traditionally led by legacy brands like Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria group’s Cream Bell.
“Hangyo Ice Creams is a fast growing and profitable consumer company that has consistently delivered high quality products driven by state-of-the-art manufacturing, wide distribution and strong customer love. Faering Capital is delighted to partner with Hangyo in their next stage of growth,” said Sameer Shroff, managing director, Faering Capital.
