Guilty spree dessert business NOTO has raised $21 crore in a pre-Series A funding round led by Equentis Angel Fund. The round also saw Inflection Point Ventures (IPV), JITO, Signal Ventures, and others participate.

The firm plans to use the funds to improve its production capacity, build its distribution network, open offline stores, and form strategic alliances to boost its brand presence in priority markets. NOTO will also roll out new product lines and deepen its omnichannel distribution model by opening its own ice cream parlours with a focus on growth in Tier-1 and Tier-2 cities and further establishing itself in the quick commerce space to meet growing demand.

Established in 2019 by Ashwini Seth and Varun Seth, NOTO had earlier raised $4 crore in its pre-Series A funding. The company has received investments from prominent investors like Titan Capital, Rockstud Capital, WEH Ventures, and Lead Angels. It rivals companies like Go Zero, NIC, Get-A-Way, and Minus 30.

With growing disposable incomes, food and beverage spending by consumers is on the rise in India. Moreover, the rising trend of conscious and healthy eating offers great opportunities for brands such as NOTO. The food and beverage industry in the country is expected to grow to $68 billion by 2030 at a compound annual growth rate (CAGR) of 25%. Investors continue to be upbeat about startups in this space, as seen in recent funding rounds, such as Go Zero's $30 crore fundraise and Hocco's valuation reaching $600 crore mere weeks after launch.