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The alternative dairy sector in India continues to attract significant investor interest, with 1.5 Degree becoming the latest beneficiary of this growing trend. The plant based food startup has successfully closed a $1 million pre-Series A funding round, with 35North Ventures’ India Discovery Fund II taking the lead investor position.
Strategic Focus on Institutional Markets
Unlike many consumer facing food startups, 1.5 Degree has carved out a distinctive niche by targeting the institutional food service segment. Operating through its parent entity Natturz Bio Kontrol Pvt Ltd, the company supplies plant based alternatives to corporate cafeterias, hospitality establishments, educational facilities, and large scale dining operations. This strategic positioning has enabled the startup to establish partnerships with industry heavyweights including Compass Group and Sodexo, two of the world’s leading food service management companies.
The institutional first approach has proven financially advantageous, with approximately 80 percent of the company’s revenue stream originating from B2B contracts. This business model provides greater revenue predictability compared to direct consumer sales, as institutional agreements typically involve volume based commitments and extended contract periods.
Product Innovation and Sustainability
1.5 Degree’s product range addresses the growing demand for sustainable protein alternatives in the Indian market. The portfolio encompasses plant based milk variants, yogurt, tofu, cooking cream, gelatos, frozen desserts, smoothie yogurt bowls, and oat-milk beverages. The company has invested in developing proprietary processing methods specifically designed to overcome taste and texture challenges that have historically limited plant based dairy adoption among Indian consumers.
Environmental impact remains a core value proposition. The startup reports substantial reductions in carbon emissions and water consumption compared to conventional dairy production methods, aligning with increasing corporate sustainability commitments across the food service industry.
Expansion Roadmap
The fresh capital injection will fund manufacturing capacity expansion and geographical diversification. The company plans to establish operations in several major metropolitan areas including Mumbai, Pune, Bengaluru, Hyderabad, and Delhi. Currently, 1.5 Degree maintains active operations across Bengaluru, Pune, and the National Capital Region.
While maintaining its B2B emphasis, the company is cautiously exploring direct to consumer channels through premium retail partnerships, dedicated experience centers, and cloud kitchen integration with food delivery platforms. This measured approach to retail expansion suggests the company intends to leverage its institutional credibility to build consumer brand recognition gradually.
As consumer awareness around health and environmental sustainability continues rising, 1.5 Degree’s institutional foundation positions it well to capture emerging opportunities in India’s evolving alternative protein landscape.
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