India’s alternative dairy ecosystem is gaining momentum as plant-based food startup 1.5 Degree has raised $1 million (approximately ₹8.3 crore) in a Pre-Series A funding round led by 35North Ventures’ India Discovery Fund II. The fresh capital comes at a time when demand for sustainable and plant-based food options is steadily rising across urban India.
The Bengaluru-based startup, operating under Natturz Bio Kontrol Pvt Ltd, plans to deploy the funds to expand manufacturing capacity, strengthen institutional partnerships, and scale operations across key Indian cities. These include Mumbai, Pune, Bengaluru, Hyderabad, and Delhi, where demand from corporate cafeterias and organised food service players is growing rapidly.
1.5 Deggree’s Focus on Institutional Food Services
Unlike many alternative dairy brands that primarily focus on retail consumers, 1.5 Degree has strategically positioned itself in the institutional and B2B food service segment. The company supplies plant-based dairy products to corporate offices, educational institutions, hospitality chains, and large catering companies.
By focusing on institutional kitchens, the startup has been able to secure long-term contracts and recurring revenue streams. This approach also helps drive adoption at scale, as thousands of consumers interact with its products daily through organised food service channels rather than individual retail purchases.
Wide Range of Plant-Based Dairy Products
1.5 Degree offers a diverse portfolio of plant-based alternatives designed to match the taste and texture expectations of Indian consumers. Its product lineup includes plant-based milk, yogurt, tofu, cooking cream, frozen desserts, gelatos, smoothie bowls, and oat-milk beverages.
The company claims that its offerings are developed using proprietary processing techniques that significantly reduce the aftertaste often associated with plant-based dairy. This focus on flavour and mouthfeel has helped the brand gain acceptance among chefs and institutional buyers who prioritise consistency and taste.
Sustainability at the Core
Sustainability remains a key driver behind 1.5 Degree’s business model. The startup highlights that its products consume significantly less water and generate lower greenhouse gas emissions compared to conventional dairy. These benefits are increasingly important for large organisations aiming to meet environmental and ESG goals.
As climate awareness grows within corporate India, plant-based alternatives are gradually moving from niche offerings to strategic procurement choices, especially in modern workplaces and premium institutions.
Expansion Plans and Market Opportunity
Currently operational in Bengaluru, Pune, and the NCR region, the startup generates nearly 80% of its revenue from institutional clients, offering stability and predictable cash flows. Alongside its B2B focus, 1.5 Degree has also begun exploring direct-to-consumer channels through select premium stores, experience centres, and cloud kitchens on food delivery platforms.
With backing from 35North Ventures, the company aims to deepen its presence in India’s fast-evolving plant-based food market and establish itself as a leading player in alternative dairy solutions.
Looking Ahead
The successful Pre-Series A fundraise marks an important milestone for 1.5 Degree as it accelerates growth in a sector that is still at an early stage in India. With a strong institutional focus, expanding product portfolio, and emphasis on sustainability, the startup is well-positioned to ride the next wave of change in India’s dairy and food consumption landscape.