New Delhi, July 23 -- Hocco Foods Pvt Ltd, the Ahmedabad-based ice cream brand owned by the Chona family, is in talks to raise a fresh funding round at a significantly higher valuation, at least three people familiar with the development told VCCircle.

The three-year-old company, which has been growing rapidly, is planning to raise around $25-30 million (Rs 241-289 crore) in the proposed round, seeking a valuation of Rs 3,500-4,000 crore, the people cited above said. The valuation is higher than the roughly Rs 2,500-crore valuation in its previous funding round.

The valuation could increase further if the company exceeds its FY27 net sales target.

In FY26, the company posted net sales of over Rs 530 crore, media reports said. Hocco is targeting Rs 900 crore in revenue in FY27.

It had reported consolidated net sales of Rs 207 crore in FY25, up from Rs 32 crore a year ago. However, net losses widened to Rs 63.9 crore from Rs 20.2 crore during the same period, according to VCCEdge, the data and research platform of VCCircle.

KPMG's investment banking arm is helping Hocco scout for potential investors.

Emails sent to the company and KPMG remained unanswered till the time of publishing this article.

The Chona family re-entered the ice cream business with Hocco in 2023, six years after selling the 73-year-old Havmor brand to South Korea's Lotte for over $150 million. Apart from Hocco, the family operates more than 100 casual dining restaurants, quick-service eateries and ice cream cafes.

Hocco recently raised Rs 100 crore in an internal funding round that valued it at around Rs 2,500 crore, according to media reports.

Before that, in September last year, the company secured Rs 115 crore ($13 million then) from existing investor Sauce.vc. The investment followed Sauce.vc's participation in Hocco's $20-million Series B funding round, in which it had invested an additional $10 million (Rs 86 crore then).

Hocco's fresh fundraising plans come amid growing investor interest in the ice cream segment in India.

Last month, VCCircle reported that Fireside Ventures-backed FruBon was looking to raise fresh capital.

Earlier, Jungle Ventures doubled down on its investment in NIC Ice Creams in a $20-million funding round, while healthy ice cream brand NOTO raised Rs 21 crore in a pre-Series A round led by Equentis Angel Fund.

Published by HT Digital Content Services with permission from VC Circle.