Hangyo raises $25 million from Faering Capital for Expansion

Hangyo, a well-known ice-cream brand in South India, has secured $25 million (approximately ₹200 crore) from Faering Capital in its largest institutional funding round in over two decades, as investors increasingly back consumer-focused companies.

The funds will be utilized to bolster Hangyo’s production capabilities, speed up the development of new products, and expand its footprint in its key markets, particularly in southern India, the company announced on August 22.

“This investment brings not only financial backing but also significant strategic value to our company. This partnership will significantly boost our expansion efforts, driving growth and strengthening our market leadership,” said Pradeep Pai, founder and managing director of Hangyo.

This funding places Hangyo among several ice-cream brands that have recently raised capital to scale up their operations. In recent months, brands like Hocco, Go Zero, NIC, and others have also secured funding to expand their customer base. The rapid growth in ice-cream companies has been partly driven by the rise of quick commerce, which has enhanced product discoverability and streamlined distribution.

Hangyo currently enjoys a strong presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra, with over 350 distributors and more than 30,000 retail touchpoints. The company offers a variety of products, including cups, cones, sorbets, stick ice-creams, tubs, and kulfis, across general trade, modern trade, and online channels. Hangyo’s production capacity stands at 1.2 lakh litres per day.

Established in 2003 by the Pai family, Hangyo had previously raised approximately $5 million from a group of angel investors and other backers.

For Faering Capital, this investment marks their first of 2024. The homegrown private equity firm, which has raised about $720 million across three funds, has previously invested in companies such as Bakingo, Nykaa, Smallcase, Go Digit, and Prataap Snacks.

“Hangyo Ice Creams is a rapidly growing and profitable consumer brand that has consistently delivered high-quality products through state-of-the-art manufacturing, extensive distribution, and strong customer loyalty. Faering Capital is thrilled to partner with Hangyo in their next phase of growth,” said Sameer Shroff, co-founder and managing director of Faering Capital.