Plant-based food startup 1.5 Degree has raised $1 million (about ₹8.3 crore) in a Pre-Series A round led by 35North Ventures’ India Discovery Fund II, as demand for sustainable and alternative dairy options rises across urban India. The Bengaluru-based company will use the funds to expand manufacturing, deepen institutional partnerships and scale operations in major cities.
Institutional-first strategy drives steady revenue
Operating under Natturz Bio Kontrol Pvt Ltd, 1.5 Degree has deliberately targeted the institutional and B2B food-service segment—supplying corporate cafeterias, educational campuses, hospitality chains and large caterers—rather than concentrating solely on retail shoppers.
This approach has helped the startup secure long-term contracts and recurring revenue streams. By placing products in organised foodservice channels, the company gains broad consumer exposure daily, accelerating adoption at scale without relying only on individual retail purchases.
Product portfolio tailored to Indian tastes
The company offers a wide range of plant-based dairy alternatives, including milk, yogurt, tofu, cooking cream, frozen desserts and gelatos, smoothie bowls and oat-milk beverages. It emphasises flavour and texture, using proprietary processing techniques intended to minimise the common aftertaste of plant-based dairy.
Such product characteristics have helped 1.5 Degree win acceptance among chefs and institutional buyers who prioritise consistency, mouthfeel and ease of integration into large-scale kitchens.
Sustainability as a commercial and ESG proposition
Sustainability is central to the startup’s value proposition. 1.5 Degree says its products consume less water and generate lower greenhouse gas emissions compared with conventional dairy, metrics that resonate with organisations setting environment, social and governance (ESG) targets.
As climate awareness grows within corporate India, plant-based options are shifting from niche offerings to considered procurement choices for modern workplaces and premium institutions seeking to reduce environmental footprints.
Expansion plans and market positioning
Currently present in Bengaluru, Pune and the National Capital Region, the company reports that nearly 80% of its revenue comes from institutional clients, providing stability and predictable cash flows. With the new funding, 1.5 Degree plans to scale manufacturing capacity and expand into Mumbai, Hyderabad and Delhi where organised foodservice demand is rising.
Alongside its B2B focus, the startup has started exploring direct-to-consumer channels through select premium stores, experience centres and cloud-kitchen partnerships on food delivery platforms to broaden brand visibility.
Industry context
India’s plant-based and alternative dairy market is at an early but fast-evolving stage. Institutional adoption—driven by large employers, campuses and hospitality groups—can accelerate mainstream acceptance by exposing thousands of consumers to alternatives in everyday meal settings.
With strategic investor backing from 35North Ventures, 1.5 Degree aims to deepen its foothold in India’s alternative dairy segment and position itself as a leading supplier to the growing institutional foodservice ecosystem.
