1.5 Degree raises $1 million in a pre-Series A round to expand its plant-based dairy presence across India’s alternative dairy market.
1.5 Degree, the plant-based dairy brand backed by Natturz Bio Kontrol Pvt Ltd, has secured $1 million in a Pre-Series A funding round led by 35North Ventures’ India Discovery Fund-II. The investment underscores rising investor confidence in India’s growing market for sustainable and alternative dairy solutions. The newly raised capital will support the company’s next growth phase, including scaling up manufacturing capacity, deepening institutional collaborations, and expanding operations across major urban centres such as Mumbai, Pune, Bengaluru, Hyderabad, and Delhi. Together, these cities contribute nearly 60% of India’s institutional food service demand, positioning them as strategic markets for rapid expansion.
35North’s India Discovery Fund-II, a SEBI-registered early-stage alternative investment fund, focuses on high-impact, execution-driven ventures. Its backing reflects increasing optimism around the plant-based dairy segment, which is expected to disrupt portions of India’s ₹18.9 trillion dairy industry. Operating on a B2B-first model, 1.5 Degree primarily serves institutional food service clients, including hotels, corporate cafeterias, educational institutions, and large-scale dining facilities. The company has already partnered with global food service majors such as Compass Group and Sodexo, offering customised plant-based products ranging from premium gelatos and frozen desserts to smoothie bowls and oat-milk beverages.
A key differentiator for 1.5 Degree is its proprietary AI-driven Diary processing technology, which neutralises lipoxygenase enzymes responsible for undesirable flavours in plant-based dairy. This innovation enables the brand to deliver cholesterol-free products with up to 72% lower greenhouse gas emissions and 80% reduced water consumption, without compromising on taste. These sustainability-led benefits are gaining strong traction among institutional buyers focused on ESG goals, workforce wellness, and operational efficiency.
Alongside its institutional strategy, 1.5 Degree is also expanding into the direct-to-consumer segment through retail outlets and collaborations with cloud kitchens in metro cities. Commenting on the milestone, Co-founder and CEO Vedansh Goyal said the funding validates the company’s vision and strengthens its ability to drive India’s shift toward sustainable food systems by combining innovation with strategic B2B partnerships.