Kavv Foods-owned NOTO Ice Cream has achieved profitability and a revenue of ₹35 crore in FY26. The startup succeeded by focusing on low-sugar, healthy desserts and leveraging quick-commerce delivery platforms. While the company is expanding its footprint, it operates as a private business and faces significant competition from both large food giants and niche health-focused brands.
NOTO Ice Cream, the healthy dessert brand owned by Kavv Foods, has marked a significant business milestone by reaching profitability in FY26. Founded in 2019 by Varun Sheth and Ashni Shah, the company reported annual revenue of ₹35 crore. By focusing on the low-sugar and low-calorie dessert segment, the startup has successfully transitioned from a niche experiment to a sustainable business model in the Indian market.
A key factor in this growth has been the company’s decision to prioritize quick-commerce platforms such as Blinkit, Zepto, and Swiggy Instamart. By integrating with these delivery services, NOTO bypassed the high overhead costs of building traditional physical retail outlets. This strategy allowed the brand to reach consumers in major cities like Mumbai, Pune, NCR, Bengaluru, Hyderabad, and Chennai without the expense of maintaining extensive storefronts. The founders have also streamlined their operations by winding down their legacy venture, 1Tablespoon, to focus entirely on the NOTO brand.
The company has secured funding from various investors, including actor John Abraham, White Whale Ventures, Rainmatter, and Inflection Point Ventures, to fuel its growth. While the brand has reached a private valuation of ₹85 crore, management has emphasized that the goal is long-term business sustainability rather than rapid, cash-burning expansion. The brand now aims to expand its reach into tier-2 cities and improve its omnichannel presence.
The healthy dessert sector in India is becoming increasingly crowded. NOTO competes with other specialized players like Go Zero and Get-A-Way, both of which are also targeting health-conscious consumers. Beyond these startups, the company must also navigate the competitive landscape dominated by large, established FMCG giants like Amul and Kwality Wall's, which have significantly deeper pockets and wider distribution networks.
Operating in the frozen dessert segment brings inherent business risks. Maintaining product quality requires a consistent and expensive cold-chain infrastructure to ensure items are delivered without melting or spoiling. Additionally, the company is exposed to the volatility of raw material prices, particularly dairy. Fluctuations in these costs can directly impact the company’s ability to maintain its profit margins. As NOTO scales its operations to smaller cities, it will need to maintain high service levels and product consistency, which are critical for retaining customers in a highly price-sensitive market.