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, a timely infusion as demand for sustainable and plant-based foods rises across urban India. The Bengaluru-based company will use the capital to expand manufacturing, deepen institutional partnerships and scale operations in major cities.
Institutional focus drives predictable growth
Operating under Natturz Bio Kontrol Pvt Ltd, 1.5 Degree has deliberately focused on the institutional and B2B food-service segment rather than primarily targeting retail consumers. The startup supplies plant-based dairy alternatives to corporate cafeterias, educational campuses, hospitality chains and large catering firms.
This B2B-first approach has enabled the company to secure long-term contracts and recurring revenue, allowing adoption at scale as thousands of consumers encounter its products daily through organised food service channels rather than individual retail purchases.
Product portfolio tailored to Indian tastes
1.5 Degree offers a broad portfolio of plant-based dairy alternatives designed for Indian flavour and texture preferences. The range includes plant-based milk, yogurt, tofu, cooking creams, frozen desserts and gelatos, smoothie bowls and oat-milk beverages.
The company says it uses proprietary processing techniques to minimise the typical aftertaste associated with many plant-based dairy products. Consistent flavour and mouthfeel have helped the brand gain acceptance among chefs and institutional buyers who prioritise reliable culinary performance.
Sustainability as a core proposition
Sustainability underpins 1.5 Degree’s positioning. The startup highlights lower water usage and reduced greenhouse gas emissions for its products compared with conventional dairy, a selling point for organisations working to meet environmental and ESG targets.
As climate-conscious procurement grows within corporate India, plant-based alternatives are transitioning from niche choices to strategic items on menus of modern workplaces and premium institutions.
Expansion strategy and market opportunity
Currently operational in Bengaluru, Pune and the NCR, the company reports that nearly 80% of its revenue comes from institutional clients, providing stability and predictable cash flows. Alongside its B2B thrust, 1.5 Degree is testing direct-to-consumer channels through select premium retail outlets, experience centres and cloud kitchens on food-delivery platforms.
With support from 35North Ventures, the startup plans to ramp up manufacturing capacity and extend distribution to Mumbai, Hyderabad and Delhi, targeting growing demand from organised food-service operators and corporate buyers.
Sector context
India’s alternative dairy segment remains at an early stage compared with Western markets but is showing steady growth driven by urban consumers, rising health and sustainability awareness, and expanding institutional procurement. Startups that can combine scalable manufacturing, cost competitiveness and sensory parity with dairy stand to capture significant share as corporations and food-service chains seek lower-carbon menu options.
