Alternative dairy startup 1.5 Degree has secured $1 million in a pre-Series A funding round, with 35North Ventures’ India Discovery Fund II leading the investment.
The capital infusion will be utilised to ramp up production capacity, broaden collaborations with institutional clients, and drive geographic expansion into key cities such as Mumbai, Pune, Bengaluru, Hyderabad, and Delhi.
Run by Natturz Bio Kontrol Pvt Ltd, the company caters largely to the institutional food services space, supplying plant-based dairy and frozen dessert solutions to corporate offices, hospitality chains, educational institutions, and large-scale food operators. It counts major food service companies like Compass Group and Sodexo among its partners.
1.5 Degree offers a diverse portfolio that includes plant-based milk, yogurt, tofu, cooking cream, gelatos, frozen desserts, smoothie bowls, and oat-milk-based beverages. The startup also operates on-site QSR concepts within institutions and delivers products through long-term B2B supply agreements.
The startup relies on in-house processing technology designed to improve taste and texture of plant-based dairy products for Indian palates, while also claiming lower environmental impact in terms of emissions and water usage compared to conventional dairy.
At present,close to 80% of its revenue is generated from institutional clients, offering consistent and predictable cash flows through bulk contracts and a tightly managed supply chain. The company is currently active in Bengaluru, Pune, and the NCR region.
Alongside its institutional focus, 1.5 Degree has started exploring direct-to-consumer avenues, including premium retail placements, experience-driven formats, and cloud kitchens integrated with food delivery platforms.