Ice cream brand Hangyo scoops up $25 Mn from Faering Capital

Hangyo, an Indian ice cream brand, has recently secured $25 million (about Rs 211 crore) from Faering Capital, marking one of the largest investments in an Indian ice cream company. 

This funding will help Hangyo enhance its production, speed up the development of new products, and expand its market reach, particularly in South India.

Founded in 2003 by Pradeep Pai and Dinesh Pai, Hangyo offers a variety of ice cream products including cups, cones, sorbets, stick ice creams, tubs, and kulfis. Their products are available through general trade, modern trade, and online channels, including quick commerce apps. 

Hangyo has a strong foothold in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra, with over 350 distributors and more than 30,000 retail locations. The company claims to have served over 3 million customers by February of this year.

In the fiscal year 2023, Hangyo saw a significant increase in its revenue, which grew by 50% to Rs 233 crore. The company's profit also surged nine times to Rs 5.8 crore during the same period. 

This new funding for Hangyo comes after more than a decade since their last major investment round in August 2013, when they raised $5 million from Capvent Partners. Recently, other ice cream brands like Hocco, Go Zero, and NIC have also raised significant funds.