Mumbai-based NOTO Ice Cream, a leading guilt-free ice cream brand, has secured INR 15 crore in its latest funding round, led by Inflection Point Ventures (IPV), with participation from JITO and Lets Venture. This funding will fuel the company’s expansion into Tier I and Tier II cities, the launch of new flavors and formats, and strengthen its marketing, infrastructure, and brand visibility.
This latest investment follows NOTO’s INR 4 crore pre-Series A round, which saw backing from Titan Capital, Rockstud Capital, Bollywood actor John Abraham, WEH Ventures, and other angel investors. Since its inception in 2019, NOTO has disrupted the Indian ice cream market by offering indulgent yet healthy alternatives. The brand specializes in low-calorie, high-protein, and low-sugar ice creams, catering to health-conscious consumers without compromising on taste.
NOTO’s Business Model and Offerings
Working Model and Revenue Streams
NOTO follows a direct-to-consumer (D2C) model, leveraging online and offline channels for sales. It generates revenue through e-commerce platforms, quick-commerce apps, and traditional retail stores. The brand has built a strong online presence through Swiggy, Zomato, Zepto, BigBasket, Instamart, Blinkit, and Flipkart, alongside expanding its footprint in physical retail stores.
Product Line
NOTO’s diverse product lineup includes ice cream tubs, popsicles, Greek yogurt cheesecakes, and vitamin C-fortified fruit popsicles. The brand takes pride in using prebiotic fiber, natural protein sources, and eliminating preservatives, artificial sweeteners, flavors, and colors—offering 75% less sugar than traditional ice cream.
Funding Background and Investors
Previous Investments
Before this INR 15 crore funding round, NOTO raised INR 4 crore in a pre-Series A round backed by Titan Capital, Rockstud Capital, John Abraham, WEH Ventures, and angel investors. The latest round will accelerate offline expansion, product development, and brand awareness efforts.
Key Investors and Their Views
Vinay Bansal, Co-founder of IPV, highlighted the market gap for healthy yet tasty desserts, stating, “Health-conscious consumers often struggle to balance their cravings with a nutritious lifestyle. Most options in the market either lack taste or nutritional value. NOTO is solving this challenge by providing delicious yet healthy alternatives. Their commitment to redefining guilt-free indulgence makes them a scalable and impactful brand.”
Expansion Plans and Market Growth
Geographical Expansion
Currently, NOTO operates in Mumbai, Delhi, Bangalore, Hyderabad, Chennai, and Pune. With this funding, the company plans to expand into Ahmedabad, Kolkata, and Lucknow, strengthening its offline presence to reduce dependency on online sales.
Industry Growth Trends
The Indian ice cream market was valued at INR 228.6 billion in 2023 and is projected to reach INR 956 billion by 2032. The demand for healthy, innovative desserts is rising, making NOTO’s market positioning highly strategic.
Founders and Their Vision
Background of Founders
Varun Sheth, a trained chef with a background in Culinary Arts from New York, co-founded NOTO along with Ashni Sheth, a communication and design expert from Mumbai’s St. Xavier’s College and Istituto Marangoni, Milan. Their combined expertise in food science, branding, and marketing has fueled NOTO’s growth.
Vision for the Future
Varun Sheth, Co-founder and CEO of NOTO, emphasized, “At NOTO, ‘Eating, Not Cheating’ is our core philosophy. This funding enables us to expand into new cities and introduce more innovative flavors. We are excited about scaling new heights and redefining the ice cream experience. We appreciate IPV’s support in our journey.”
Learning for Startups and Entrepreneurs
- Innovation is Key: Identifying a market gap and creating a unique offering can differentiate a brand in a competitive space.
- Strong Branding Matters: A well-crafted brand identity resonates with customers and builds loyalty.
- Multi-Channel Sales Strategy: Expanding both online and offline channels can help reach a larger audience.
- Investor Backing: The right investors bring not only capital but also strategic guidance and industry expertise.
- Customer-Centric Approach: Understanding consumer needs and preferences leads to long-term growth and brand success.
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