Online retailer of bread goods Bakingo has raised $16 million (more than Rs 130 crore) in growth capital from private equity company Faering Capital in its first round of funding.
According to a statement, the company hopes to increase the number of dark kitchens it operates from 75 to 150 and expand into 10 new cities with this investment.
Himanshu Chawla, Co-founder of Bakingo, shared “We firmly believe that India needs an authentic homegrown brand, and we are in prime position to be the pioneering National Bakery and Gifting platform. This growth capital investment by Faering Capital will propel us in executing on our vision and scaling nationally.”
In 2016, Himanshu Chawla, Shrey Sehgal, and Suman Patra established Bakingo as a continuation of their entrepreneurial endeavours. Having served over 6 million consumers since its founding, the business experienced strong growth and profitability without the need for outside capital.
Sameer Shroff, Co-founder and Managing Director of Faering Capital said “We admire how Himanshu, Shrey, Suman, and the Bakingo team have built a ~200 Cr profitable brand that consistently delivers customer delight across the country. Even more impressive is that they have built the company bootstrapped, without any external funding and Faering Capital is delighted to invest the first growth capital round and partner with Bakingo for their next stage of growth.” Post the transaction, Sameer Shroff will join the board of directors of the company.
Bakingo has continuously provided its customers with affection and loyalty over the past few years throughout India, especially in Gurgaon, Delhi, Noida, Bangalore, Hyderabad, and Mumbai. In an effort to forge a stronger foothold in the Indian market, the corporation has also just extended its operations to Jaipur, Chandigarh, Lucknow, and a few smaller cities including Meerut, Panipat, Karnal, and Rohtak. For the transaction, IndigoEdge served as the company’s only advisor.
Shrey Sehgal, Co-founder of Bakingo, expressed his excitement about the investment, stating, “We are delighted to welcome Faering Capital as a valued partner given their track record in working with entrepreneurs and their expertise in Consumer Brands.”
Continuous focus on process and technology has helped Bakingo scale its operations with consistency in taste and quality. The brand offers a wide variety of cakes and desserts, including its signature Cheesecake, Gourmet Cakes, Jar Cakes, and other 100+ SKUs. Moreover, the company also has the unique ability to customize more than 200 cake designs and deliver within 2 hours in 13 cities.