1.5 Degree, India’s leading pioneers in alternative dairy platform by Natturz Bio Kontrol, has successfully closed a $1.0 million Pre-Series A funding round led by 35North Venture’s India Discovery Fund-II. The investment will accelerate manufacturing scale-up, deepen institutional partnerships, and fuel geographic expansion to Mumbai, Pune, Bangalore, Hyderabad, and Delhi—markets representing nearly 60% of India’s institutional food service opportunity. India Discovery Fund, a SEBI accredited AIF and one of India’s largest early-stage funds, invests into top class founders with executional excellence and deep industry knowledge at their early stage of their company’s journey.

1.5 Degree is creating a new category within India’s ₹18.9 trillion dairy market by bypassing consumer adoption challenges and focusing on institutional food service. Through strategic partnerships with global food service leaders Compass Group and Sodexo, 1.5Degree.co delivers a comprehensive portfolio of plant-based offerings—from premium gelatos and mass-market frozen desserts to frozen smoothie yogurt bowls and oat-milk refresher beverages—directly to corporate cafeterias, hotel chains, educational institutions, and large-scale dining operations across India, including via its own in-institution QSR formats. With a portfolio spanning gelatos, frozen desserts, milk, yogurt, tofu, cooking cream, smoothie yogurt bowls, and oat-milk refresher beverages, are building a complete alternative protein and nutrition replacement platform at scale.

1.5 Degree focuses on institutional decision-makers who prioritize health, sustainability, and operational efficiency over cultural preferences. The company has developed proprietary AI-aided processing technology that deactivates lipoxygenase enzymes, solving the long-standing off-flavour problem in plant-based alternatives for Indian markets. The result: oat-milk-based products specifically tailored for Indian palates, offering 72% lower GHG emissions, 80% less water consumption, and zero cholesterol—without compromising on taste.

India’s institutional food service market now exceeds ₹50,000 crores annually. As corporate India increasingly embraces ESG mandates and employee wellness programs, demand for sustainable, health-conscious food options continues to accelerate. Traditional dairy incumbents have limited focus on institutional plant-based alternatives, while emerging startups remain largely consumer-focused— creating a blue-ocean opportunity for platforms like 1.5 Degree that serve millions of everyday consumers within institutional ecosystems—shaping healthier, sustainable food choices where India eats daily.

1.5Degree.co has strategically positioned itself as a B2B-first platform, with nearly 80% of revenue derived from long-term institutional contracts. This business model delivers predictable recurring revenue with high switching costs driven by menu integration and operational dependencies. Volume-based contracts, API-driven ordering systems, and cold-chain partnerships enable seamless pan-India distribution.

While remaining institution-first, 1.5 Degree is also entering the D2C segment through premium retail parlours and experience centres, alongside cloud-kitchen expansion across Delhi, Mumbai, Bangalore, Pune, and Hyderabad via Zomato and Swiggy.

Vedansh Goyal, Co-Founder & CEO of 1.5 Degree, said: “We are thrilled to announce the closing of our funding round. We founded 1.5 Degree to bring intentionality and sustainability to India’s institutional food service. The current dairy landscape is broken—67% of milk is adulterated, 60% of Indians are lactose intolerant, yet alternatives cost 3–10x more and taste terrible. Our platform solves real institutional pain points: ESG compliance, employee wellness, cost optimization, and supply reliability. We’re not just offering plant-based alternatives—we’re enabling India’s institutions to lead the sustainable food transition while delivering guilt-free indulgence people genuinely enjoy.”

“1.5 Degree was created to solve a systemic market failure,” says Anagh Goyal, 20-year-old Co-Founder & CTO of 1.5 Degree and BITS Pilani Entrepreneur of the Year. “With 35North Ventures coming on board early, we’re building with partners who share our long-term vision and conviction in the problem we’re solving. India today faces an impossible choice: compromise on sustainability, pay premium prices, or serve products customers reject. After three years of R&D, our patent-pending enzyme deactivation process delivers plant-based dairy tailored for Indian taste preferences.”

Sunil Gurbaxani, Managing Partner at 35North Venture’s India Discovery Fund-II, said: "We are thrilled to invest in 1.5 Degree.co as they are pioneers of institutional plant-based dairy in India. The founders bring exceptional execution discipline with bold vision—exactly what this nascent category needs. 1.5 Degree's B2B-first approach addresses this reality head-on, targeting rational decision-makers who prioritize ESG compliance, employee wellness, and cost efficiency over cultural inertia. With proprietary technology solving taste challenges, strategic partnerships with dominant food service providers, and an asset-light scaling model, 1.5 Degree is positioned to become the category leader in India's institutional plant-based transition. We are confident that they will set the new standard for sustainable institutional food service across India and beyond."