Hangyo Ice Cream Raises Record $25 Million, Records 23.5% Revenue Growth in FY24

Mangalore-based Hangyo Ice Cream has landed a cool $25 million from Faering Capital, setting a new record for venture funding in India's ice cream sector.

According to financial filings with the Registrar of Companies, the 21-year-old company's revenue jumped 23.5% to Rs 294 crore in the last fiscal year, while profits more than doubled to Rs 11.8 crore.

Founded by brothers Pradeep and Dinesh Pai in 2003, Hangyo has built a loyal customer base across South India with its diverse lineup of cups, cones, sorbets, and traditional kulfis. The company sells through neighborhood shops, supermarkets, and increasingly through quick-commerce apps.

Raw material costs comprised 57% of the company's expenses, rising 9.1% to Rs 168 crore. Staff costs shot up nearly 39% to Rs 25 crore as the company expanded operations and added new talent.

Despite these climbing expenses, Hangyo spent just 95 paise to earn each rupee of revenue. Its return on capital employed improved to 28.77%, while EBITDA margins hit 11.86% – numbers that likely caught investors' attention.

This latest cash infusion brings Hangyo's total funding to $30 million, including $5 million from Capvent Partners in 2013.

The premium ice cream space has suddenly become a hot investment target. Competitors Hocco snagged $12 million from the Chona family, while NIC secured a whopping $31 million across two rounds. Even Mumbai-based newcomer Go Zero, focusing on healthier frozen treats, pulled in $2.5 million from eager investors.

With summer temperatures rising across India and disposable incomes growing, the battle for freezer space is heating up like never before.