1.5 Degree secures US$1M pre-series A funding

INDIA – 1.5 Degree, India’s leading pioneers in the alternative dairy platform by Natturz Bio Kontrol Pvt Ltd, has successfully closed a US$1.0 million Pre-Series A funding round led by 35North Venture’s India Discovery Fund-II.

The investment will accelerate manufacturing scale-up, deepen institutional partnerships, and fuel geographic expansion to Mumbai, Pune, Bangalore, Hyderabad, and Delhi—markets representing nearly 60% of India’s institutional food service opportunity.

India Discovery Fund, a SEBI-accredited AIF and one of India’s largest early-stage funds, invests into top class founders with executional excellence and deep industry knowledge at the early stage of their company’s journey.

1.5 Degree is creating a new category within India’s ₹18.9 trillion dairy market by bypassing consumer adoption challenges and focusing on institutional food service.

Through strategic partnerships with global food service leaders Compass Group and Sodexo, 1.5Degree.co delivers a comprehensive portfolio of plant-based offerings—from premium gelatos and mass-market frozen desserts to frozen smoothie yogurt bowls and oat-milk refresher beverages.

Vedansh Goyal, Co-Founder & CEO of 1.5 Degree, said, “We are thrilled to announce the closing of our funding round. We founded 1.5 Degree to bring intentionality and sustainability to India’s institutional food service. The current dairy landscape is broken—67% of milk is adulterated, 60% of Indians are lactose intolerant, yet alternatives cost 3–10x more and taste terrible.“

With a portfolio spanning gelatos, frozen desserts, milk, yogurt, tofu, cooking cream, smoothie yogurt bowls, and oat-milk refresher beverages, are building a complete alternative protein and nutrition replacement platform at scale.

1.5 Degree focuses on institutional decision-makers who prioritize health, sustainability, and operational efficiency over cultural preferences.

The company has developed proprietary AI-aided processing technology that deactivates lipoxygenase enzymes, solving the long-standing off-flavour problem in plant-based alternatives for Indian markets.

The result: oat-milk-based products specifically tailored for Indian palates, offering 72% lower GHG emissions, 80% less water consumption, and zero cholesterol—without compromising on taste.

1.5Degree.co has strategically positioned itself as a B2B-first platform, with nearly 80% of revenue derived from long-term institutional contracts.

This business model delivers predictable recurring revenue with high switching costs driven by menu integration and operational dependencies. Volume-based contracts, API-driven ordering systems, and cold-chain partnerships enable seamless pan-India distribution.

While remaining institution-first, 1.5 Degree is also entering the D2C segment through premium retail parlours and experience centres, alongside cloud-kitchen expansion across Delhi, Mumbai, Bangalore, Pune, and Hyderabad via Zomato and Swiggy.

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