Backed by 35North Ventures, company plans metro expansion and manufacturing scale-up

Alternative dairy startup 1.5 Degree has raised $1 million in a pre-Series A funding round led by 35North Ventures’ India Discovery Fund II, as institutional demand for plant-based food options gains momentum.

The fresh capital will be used to scale manufacturing capacity, deepen institutional partnerships and expand the company’s footprint across major metropolitan markets.

Operated by Natturz Bio Kontrol, 1.5 Degree operates primarily in the institutional food service segment, supplying plant-based dairy and frozen dessert products to corporate cafeterias, hotels, educational institutions and large-format dining facilities. The company partners with global food service providers including Compass Group and Sodexo to integrate plant-based alternatives into mainstream menus.

With the new funding, the startup plans to expand into Mumbai, Hyderabad and Delhi, while strengthening its presence in existing markets such as Bengaluru, Pune and the National Capital Region (NCR).

1.5 Degree’s portfolio includes plant-based milk, yogurt, tofu, cooking cream, gelatos, frozen desserts, smoothie yogurt bowls and oat milk beverages. The company also operates in-institution quick-service restaurant (QSR) formats and works on long-term B2B supply contracts, positioning itself as a backend solutions provider rather than a retail-facing brand.

The fundraising comes amid growing investor interest in India’s alternative protein and plant-based dairy space, as sustainability considerations and institutional procurement policies increasingly influence food service demand.