STARTUP-STORIES
Hangyo Ice Cream Secures ₹211 Crore Investment from Faering Capital to Fuel Growth
SUMMARY
1. Mangaluru-based Hangyo Ice Cream has raised ₹211 crore from Faering Capital, which now holds a 24% stake in the company. The funds will be used to enhance production capabilities, develop new products, expand market reach, and boost advertising efforts.
2. Founded in 2003, Hangyo aims to increase its revenue from ₹300 crore to ₹700 crore in the next four years. The company plans to strengthen its presence in southern India, diversify its product range, and compete in a growing $5 billion ice cream market with emerging new-age brands.
Mangaluru-based Hangyo Ice Cream has successfully raised approximately ₹211 crore from private equity firm Faering Capital. This significant funding injection will empower Hangyo to enhance its production capabilities, accelerate product development, expand its market presence, and boost advertising efforts.
Strategic Investment and Growth Plans
Following this investment, Faering Capital has acquired a 24% equity stake in Hangyo Ice Cream. The funds will be allocated to several key areas: increasing production capacity, diversifying product offerings, and extending market reach primarily across southern India. Managing Director Pradeep Pai highlighted that the investment is crucial for taking Hangyo to the next level. “This funding will drive our innovation in new product development, market expansion, and advertising,” Pai told ET.
Market Position and Revenue Goals
Founded in 2003, Hangyo Ice Cream has built a robust presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra. The company operates two manufacturing facilities in Karnataka, producing 120,000 litres of ice cream daily. With approximately 350 distributors and 30,000 retailers, Hangyo achieved a revenue of ₹300 crore in the fiscal year 2023-24 and aims to reach ₹700 crore within the next four years. Karnataka remains a major revenue contributor, accounting for nearly half of its turnover.
Industry Trends and Emerging Competition
India’s ice cream market, valued at around $5 billion this year, is experiencing a surge of new-age brands such as Noto, Get-A-Way, Go Zero, Frubon, and Minus 30. These emerging players are challenging established brands like Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria Group’s Cream Bell. The competitive landscape is further evolving with reports that Hindustan Unilever may spin off its ice cream business into a separate unit.
Sameer Shroff, Managing Director at Faering Capital, expressed enthusiasm about the partnership. “Hangyo Ice Cream is a fast-growing and profitable consumer company with high-quality products, state-of-the-art manufacturing, and a broad distribution network. We are excited to support Hangyo in its next growth phase,” Shroff noted.
As Hangyo Ice Cream prepares to leverage this new capital for growth, the company's strategic initiatives will likely enhance its position in the competitive ice cream market, offering diverse flavors and expanding its footprint across India.