Skippi Ice Pops Raises INR 10 Cr in Pre-Series A Round

Hyderabad ice popsicle brand Skippi Ice Pops has raised INR 10 Cr ($1.2 Mn) in a Pre-Series A funding round led by Hyderabad Angel Network and Venture Catalysts. The round also included investment from Soonicorn Ventures, HEM Securities, and a set of angel investors.

The company has also made announcements of raising another INR 7 Cr as a part of the same funding round and is in the process of negotiation with potential investors.

Allocation of Funds for Growth and Expansion

According to Ravi Kabra, CEO and co-founder of Skippi, the freshly acquired capital will be primarily allocated towards brand building, marketing, and expansion efforts. The startup has outlined its fund utilization strategy as follows:

• 40% – Branding and marketing
• 30% – Working capital
• 20% – New product development
• 10% – Hiring leadership team

“With this funding, we will focus on building our brand, creating new products, and bringing in great talent to our leadership team,” Kabra stated.

From Shark Tank to an 80-Fold Revenue Surge

Skippi Ice Pops initially made headlines in 2022 when it featured on Shark Tank India Season 1, attracting investments from all the six sharks – Aman Gupta, Ashneer Grover, Anupam Mittal, Namita Thapar, Vineeta Singh, and Piyush Bansal. The sharks made a combined investment of INR 1.2 Cr in exchange for an 18% stake in the business.

After its success on Shark Tank, Skippi saw its monthly revenues grow 80 times over, from INR 5-7 Lakhs to an Annual Run Rate (ARR) of INR 60 Cr – INR 100 Cr in 2024.

Apoorva Ranjan Sharma, co-founder and managing director of Venture Catalysts, expressed confidence in Skippi’s potential, stating, “Skippi’s strong brand presence and rapid growth make them an attractive investment opportunity. This strategic move aims to boost Skippi’s market presence and innovate within a booming industry driven by rising disposable incomes and changing consumer preferences.”

Skippi’s Market Position and Distribution Network

Founded in 2021 by Ravi and Anuja Kabra, Skippi Ice Pops has positioned itself as India’s first ice pops brand. The company follows an omnichannel retail model, with its products available in over 20,000 outlets across India.

Skippi offers:

• Popsicles in multiple flavors
• Cream rolls and cornsticks

The company ensures the use of all-natural ingredients and RO water for its ice pops. Its products are available through a combination of direct-to-consumer (D2C) sales via Skippi’s website and major quick-commerce platforms, including:

• Zepto
• Swiggy Instamart
• Cred
• Amazon
• Big Basket

The startup also has a strong distribution network, with over 200+ stockists and distributors across India. Skippi claims to manufacture its products using patented technology.

The Booming Indian Ice Cream Market

The Indian ice cream industry is witnessing exponential growth. According to IMARC Group, the Indian ice cream market, which was valued at INR 228.6 Bn in 2023, is projected to reach INR 956.0 Bn by 2032. This expansion is driven by:

• Increasing disposable incomes
• Rising demand for innovative and indulgent frozen desserts
• The growing preference for natural and organic ingredients

While Skippi positions itself as India’s first dedicated ice pops brand, it faces competition from established players such as Amul, Mother Dairy, Kwality Wall’s, Vadilal, Creambell, Havmor, Natural Ice Cream, Giani’s, and Dinshaw’s, which also offer popsicle variants.

Future Plans and Outlook

With the new investment, Skippi will be driving its brand-building efforts, product launches, and leadership team consolidation. The startup is also eager to expand its market presence and innovate in the frozen dessert space.

With its fast growth pace and growing demand from consumers for natural, preservative-free frozen desserts, Skippi is well placed to make a strong position in India’s expanding ice cream and frozen dessert market.