NOTO Ice Creams and Desserts plans to use its latest ₹21 crore funding round—the company’s largest so far—to scale its operations in a focused and sustainable way.
In an interview with CNBC-TYV18, Co-Founder and CEO Varun Sheth said the capital raised in a pre-Series A round led by Equentis Angel Fund will be used to strengthen distribution, expand into new product lines, and open physical ice cream parlours.
“It’s a good amount of capital, but not a huge amount,” said Sheth. “So, we’ve got to be smart about how many things we can realistically do with it.” The digital-first brand is now looking at a hybrid strategy to deepen customer engagement and boost visibility, including setting up company-branded experience centres.
According to Sheth, going offline is a natural progression for the brand, given that digital-only discovery has its limits. “Ice cream is a very social activity to some extent,” he said. “You buy online for what you keep in your freezer, but you also go out with friends and family to enjoy something nice, right?”
The company has already made strong inroads in 16 cities, largely thanks to the rise of quick commerce. “Quick commerce has enabled and democratised distribution. We’re in the same freezers, in the same dark stores, where Amul and Kwality Walls are being sold,” he said.
NOTO reported ₹40 crore in revenue last year and is targeting ₹100 crore over the next two years. The company’s early success has been driven by a deep understanding of frozen supply chain logistics, which Sheth calls a key factor in their growth.
Another major driver, he said, is the brand’s focus on delivering product consistency. “Any food brand that you love, you’ll always have one or two favourite picks that you go there for,” he said. “We believe that giving a great product with repeated consistency helps retain customers.”
Sheth also highlighted the company’s dual focus on diabetics and health-conscious youth. “There’s a big opportunity in ice creams where no one is solving for health in a smart, sexy, fun way,” he said, pointing to rising health awareness and the growing demand for sugar-free alternatives.
With new capital in hand, NOTO is now preparing to double down on both its digital and physical presence as it looks to become a mainstream name in guilt-free indulgence.
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Content retrieved from: https://www.cnbctv18.com/business/startup/ice-cream-startup-noto-funding-expansion-plans-19593379.htm.
