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FY-Results•

E-Commerce

Bakingo Surpasses ₹200 Crore Revenue in FY24 Amid Marginal Losses

Three men seated around a table, holding white mugs with the "Bakingo" logo. The background is bright blue with the red "Bakingo" logo repeated, and the group is smiling in a casual, friendly setting.
By
E-Studio
2 min read

Gurugram-based online bakery brand Bakingo has reported a significant revenue increase for the fiscal year ending March 2024 (FY24). The company's revenue from operations rose by 43% to ₹208.7 crore, up from ₹145.7 crore in FY23.

Financial Performance Highlights:

  • Revenue Growth: Achieved a 43% year-on-year increase, reaching ₹208.7 crore in FY24.
  • Expenses: Total expenses grew by 46% to ₹213.8 crore, compared to ₹146.3 crore in the previous fiscal year.
  • Net Loss: Reported a marginal net loss of ₹5.3 crore in FY24, slightly higher than the previous year.

Expense Breakdown:

  • Cost of Goods Sold: Increased by 43% to ₹90 crore, accounting for 42.2% of total expenses.
  • Employee Benefits: Rose by 40% to ₹31.6 crore.
  • Advertising Expenses: Grew by 38% to ₹27.7 crore.
  • Platform Commission Fees: Jumped by 65% to ₹26.2 crore.

Founded in 2016 by Himanshu Chawla, Shrey Sehgal, and Suman Patra, Bakingo offers a diverse range of products, including signature cheesecakes, gourmet cakes, jar cakes, and over 100 other items. The company has served over 6 million customers since its inception.

In November 2023, Bakingo secured its first external funding of $16 million (approximately ₹130 crore) from Faering Capital, valuing the company at ₹571 crore. This investment aims to support Bakingo's national expansion plans, including increasing its distribution network from 75 to 150 dark kitchens and entering 10 new cities.

Our Opinion on the News:

Bakingo's impressive revenue growth in FY24 underscores its strong market presence and effective business strategies in the competitive online bakery sector. However, the concurrent rise in expenses and marginal losses indicates challenges in scaling operations sustainably. The recent infusion of capital from Faering Capital is poised to bolster Bakingo's expansion efforts, potentially enhancing its market share and operational efficiency. To achieve sustained profitability, the company should focus on optimizing cost structures, enhancing brand perception, and expanding its distribution network strategically.

Source: Entrackr