Bakingo is an online bakery brand for cake and pastries that announced a 43.2 percent increase in operational revenue to Rs 208.7 crore in FY24. The startup provides a variety of cake flavors and styles. The firm also offers parties, photos, and special cakes in different themes. The sale of these products is the company’s major and only source of revenue.
The company has secured over 16 million USD across one funding round. The firm raised this amount during its maiden funding round from Faering Capital and other investors at a valuation of Rs 571 crore. The startup offers its services for occasions like anniversaries, birthdays, and other celebrations. The startup provides Gourmet cakes, Jar cakes, and cheese cakes with over 100 SKUs.
The Gurugram-based bakery brand allows users to buy cakes and desserts via both online and offline mediums. The online platform uses advanced technologies to provide a seamless customer experience. The cost of product procurement increased by 43 percent and crossed Rs 90 crore in FY24. This cost accounted for 42.2 percent of overall expenditure. The advertising expenses increased by 38 percent to Rs 27.7 crore in FY24. However, Rs 26.2 crore from the total expenditure goes to the platform commission expenses.
The firm’s total expenditure increased by 46.1 percent to Rs 213.8 crore in FY24. The startup reported a 715.4 percent increase in its losses of Rs 5.3 crore in the same duration. Meanwhile, the employee benefits saw a 40 percent increase to Rs 31.6 crore for this fiscal year. This increase in advertising, promotional, employee benefits, and procurement costs increased the total expenses and losses. The company aims to control its losses by reducing operating expenses and employee benefits.
The startup plans to enhance its brand presence and quality perception while increasing its distribution network. Bakingo posted a total current asset of Rs 96.5 crore in FY24. The EBITDA margin became negative and stood at -0.98 percent in FY24 while the ROCE was around -6.05 percent in the same period. Bakingo faces competition from other companies in the same market segment such as The Baker’s Dozen, CakeZone, and Crème Castle.
Conclusion:
The bakery brand Bakingo announced a 43.2 percent increase in its revenue from operations to Rs 208.7 crore in FY24. This online platform offers multi-flavored cakes including Chocolate, Vanilla, and Butterscotch. The sale of these products is the firm’s primary source of revenue. The net loss also increased by 715.4 percent to Rs 5.3 crore in FY24. The startup posted total current assets worth Rs 96.5 crore for this financial year.
The cost of procurement was the highest expense for this year and stood at Rs 90 crore. While the employee benefits crossed Rs 31.6 crore in FY24. The firm’s total expenditure grew by 46.1 percent and crossed Rs 213.8 crore in the same duration. The company plans to control its operating and employee expenses to minimize its loss. The company has secured over 16 million USD from one funding to date.
Niraj Kumar is the Founder and CEO of Scoopearth, bringing over 13 years of experience across diverse domains, including journalism, content marketing, digital marketing, startup mentoring, and business coaching. His extensive background and leadership have made a significant impact in these areas, helping startups grow and succeed in a competitive landscape.
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