There’s a lot of buzz around sustainable food in India right now, and 1.5 Degree is a company to watch. This alternative dairy startup just got $1 million in a pre-Series A funding round, with 35North Ventures leading the investment through its India Discovery Fund II. This funding is a big step for the company and shows that investors are confident in sustainable food businesses that can be scaled up within India’s direct-to-consumer (D2C) and supply chains.
Natturz Bio Kontrol Pvt Ltd runs 1.5 Degree, and they’re setting themselves apart in the D2C scene by focusing on the food service market. They supply plant-based dairy and frozen desserts to places like corporate cafeterias, hotels, schools, and big restaurants. This makes them a reliable B2B partner as they gradually move into D2C channels.
The company says they’ll use the new funds to make more products, partner with more institutions, and move into cities like Mumbai, Pune, Bangalore, Hyderabad, and Delhi. This growth fits with the bigger D2C expansion happening in India’s food and beverage industry, where brands are mixing B2B stability with D2C brand-building.
1.5 Degree makes plant-based milk, yogurt, tofu, cooking cream, gelato, frozen desserts, smoothie yogurt bowls, and oat-milk drinks. Besides packaged goods, they also have in-house QSR formats and supply products through long-term contracts, which gives them steady demand and a clear view of their supply chain. This strengthens their position in the D2C business in India, even though most of their money comes from business clients.
What makes 1.5 Degree different is their special processing tech, which they use to fix the taste and texture issues that often come with plant-based dairy—a big deal for Indian consumers. By focusing on making products that taste good, they’re keeping up with what D2C consumers in India want. The company also says its products are more sustainable, with lower emissions and less water usage than regular dairy.
Right now, they’re in Bangalore, Pune, and the National Capital Region (NCR), and about 80% of their sales come from institutional contracts, which provide a steady income. This revenue mix offers financial stability and supports careful growth—something investors like to see when they’re looking at D2C funding rounds and VC-backed D2C brands in India.
While they’re mostly focused on B2B, 1.5 Degree has started testing the waters with D2C through premium retail stores, experience centers, and cloud kitchens using food delivery platforms. This lets them build brand awareness, get feedback, and strengthen brand recall without losing sight of their main institutional focus. More and more Indian D2C companies are using these kinds of hybrid strategies, especially in the food-tech and wellness areas.
This funding round is part of a bigger trend in D2C startup news around alternative nutrition, clean-label products, and eco-friendly consumption. As D2C market trends point to sustainable food becoming mainstream, companies like 1.5 Degree are in a good spot to take advantage of policy changes, enterprise adoption, and changing consumer tastes.
With new funds, a solid institutional base, and a growing D2C presence, 1.5 Degree is growing with a clear plan. Their story shows how India’s D2C scene is going beyond just consumer brands and into hybrid models that balance impact, profits, and long-term growth.
