Hangyo Ice Cream secured India's largest venture funding for an ice cream brand, raising $25 million from Faering Capital in August of last year. The investment was motivated by the company's growing size, as it exceeded Rs 300 crore in revenue in FY24 while remaining profitable.
Consolidated financial statements from the Registrar of Companies show that Hangyo's operating revenue climbed 23.5% year over year to Rs 294 crore in FY24 from Rs 238 crore in FY23.
Hangyo, founded in 2003 by Pradeep and Dinesh Pai, sells cups, cones, sorbets, stick ice creams, tubs, and kulfis through general and modern trade, as well as online channels such as quick commerce apps. In fiscal year 24, Hangyo's sole source of revenue is ice cream sales.
The cost of procurement was the ice cream seller's largest cost center, accounting for 57% of total expenditure. This cost increased by 9.1% to Rs 168 crore in FY24. Employee benefits also increased by 38.9% to Rs 25 crore in the previous fiscal (FY24).
Its power, fuel, advertising, transportation/distribution, travel, and other overheads increased total expenditure by 23.5% to Rs 294 crore in FY24 from Rs 238 crore in FY23.
Hangyo's decent scale and controlled costs helped it register a 2.1X increase in profits to Rs 11.8 crore in FY24, compared to Rs 5.6 crore in FY23. At the unit level, it cost Rs 0.95 to earn one rupee. At the unit level, it cost Rs 0.95 to earn one rupee. Its ROCE and EBITDA margins increased to 28.77% and 11.86%, respectively. By the end of fiscal year 24, its total current assets stood at 59 crore.
Hangyo has raised a total of $30 million, including $5 million from Capvent Partners in 2013.
Over the last two years, several new and established ice cream brands, including Hocco, Go Zero, and NIC, have received significant funding. Hocco raised $12 million from the Chona family and others, while NIC received $31 million in two rounds. Go Zero, based in Mumbai, also raised $2.5 million in two rounds of funding.
