1.5 Degree, an emerging leader in India’s alternative dairy sector, has raised $1 million in a Pre-Series A funding round. The investment was led by 35North Ventures’ India Discovery Fund II, signaling a strong vote of confidence in the startup’s mission to decarbonize India’s institutional food service.
Operated by Natturz Bio Kontrol Pvt Ltd, the startup is strategically tackling the “institutional gap” in the plant-based market. Unlike many competitors focusing primarily on retail shelves, 1.5 Degree derives nearly 80% of its revenue from long-term B2B contracts with global food service giants like Compass Group and Sodexo.
Proprietary Tech Meets the “Indian Palate”
The company’s name refers to the global goal of limiting temperature rise to $1.5^\circ\text{C}$, but its mission is as much about flavor as it is about the climate. 1.5 Degree uses proprietary processing technology to solve the taste and texture challenges often found in plant-based dairy.
By addressing the “off-flavors” typically rejected by Indian consumers, the startup produces oat-based milks and creams that mimic the creamy profile of traditional dairy. This approach allows them to offer a sustainable alternative that boasts:
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Significantly lower greenhouse gas emissions.
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Drastically reduced water usage compared to traditional dairy farming.
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Lactose-free and cholesterol-free profiles suited for the mass market.
Strategic Expansion Plans
The fresh capital will be used to scale manufacturing operations and fuel an aggressive multi-city expansion. Currently active in Bengaluru, Pune, and the NCR, 1.5 Degree plans to establish a presence in Mumbai, Hyderabad, and Delhi next.
The brand’s diversified portfolio includes plant-based milk, yogurt, tofu, cooking cream, gelatos, and frozen desserts. While remaining firmly B2B-focused through corporate cafeterias and educational institutions, the company has also begun expanding into direct-to-consumer (D2C) channels via premium retail outlets and cloud kitchens.
With a focus on predictable, volume-based revenue, 1.5 Degree is positioning itself as the primary supply chain partner for a more sustainable Indian food service industry.
By: Sandhya Bharti
