Guilt-free ice cream NOTO Ice Cream raises Rs 15 crore in funding

NOTO Ice Cream, the guilt-free ice cream brand that focuses on low-calorie, high-protein, and reduced-sugar products, has raised Rs 15 crore in a growth funding round led by Inflection Point Ventures (IPV), a Gurugram-based angel investment firm.

The round also saw participation from JITO Incubation and Innovation Foundation and LetsVenture.

The fresh capital follows a Rs 4 crore pre-Series A round last year, which included investments from Titan Capital, Rockstud Capital, Bollywood actor John Abraham, WEH Ventures, and other angel investors.

NOTO Ice Cream's offerings

NOTO, co-founded in 2019 by Varun Sheth and Ashni Sheth, has gained traction among health-conscious consumers by offering a range of products that do not sacrifice taste.

The startup's product line includes ice cream tubs, popsicles, Greek yogurt cheesecakes, and vitamin C-infused fruit popsicles.

“At NOTO, ‘Eating, Not Cheating’ is our core philosophy. This funding enables us to expand into new cities and introduce more innovative flavours. We are excited about scaling new heights and redefining the ice cream experience. We appreciate IPV’s support in our journey,” said co-founder and CEO Varun Sheth.

Purpose of fundraising

With this latest funding, NOTO aims to expand into Tier-1 and Tier-2 cities while launching new flavours and product formats.

The startup also plans to bolster its offline retail presence, aiming to reach more consumers and lessen dependence on online sales channels. Its ice creams are currently available on Swiggy, Zomato, Zepto, BigBasket, Instamart, Blinkit, and Flipkart, as well as in brick-and-mortar outlets.

Inflection Point Ventures co-founder Vinay Bansal expressed optimism about NOTO’s potential. “Health-conscious consumers often struggle to balance their cravings with a nutritious lifestyle. Most options in the market either lack taste or nutritional value,” Bansal said in a statement.

“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.”

Industry's growth potential

According to market research, India’s ice cream sector was valued at Rs 228.6 billion in 2023, with projections indicating it could surpass Rs 956 billion by 2032.

Within that space, NOTO has carved out a niche by using prebiotic fiber, natural protein, and 75% less sugar than standard ice cream, eliminating additives like artificial sweeteners and colors.

The startup claims to have established operations in Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, and Pune, and is set to debut in Ahmedabad, Kolkata, and Lucknow.