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Bakingo, an online cake delivery platform, has raised its first-ever round of growth capital of $16 million from private equity firm Faering Capital. With this investment, the company aims to become a leading national bakery brand.
Bakingo is looking to further strengthen its distribution footprint by expanding from 75 dark kitchens to 150 and entering 10 new cities. The company also plans to open exclusive brand stores for customers to experience the product. It would also invest in technology to enhance its production, supply chain, and forecasting capabilities.
"We are in a prime position to be the pioneering national bakery and gifting platform," said Himanshu Chawla, co-founder of Bakingo. "This growth capital investment by Faering Capital will propel us in executing our vision and scaling up nationally."
After successfully establishing Flower Aura, an e-commerce business specialising in gifting, Chawla along with Shrey Sehgal and Suman Patra continued their entrepreneurial journey by expanding the platform and founding Bakingo in 2016. The company grew without any external funding, achieving strong growth and profitability having served over 6 million customers since inception.
"The Bakingo team have built a Rs 200 crore profitable brand that consistently delivers customer delight across the country," said Sameer Shroff, co-founder and managing director of Faering Capital. "Even more impressive is that they have built the company bootstrapped, without any external funding," said Shroff who will join the board of directors of the company after the transaction.
Over the last few years, Bakingo has delivered products across India, including in Gurgaon, Delhi, Noida, Bangalore, Hyderabad, and Mumbai. The company has also recently expanded its operations to Jaipur, Chandigarh, Lucknow, and a few smaller cities such as Meerut, Panipat, Karnal, and Rohtak, with the goal of establishing a deeper, pan-India market presence.
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"Faering Capital has a track record in working with entrepreneurs and expertise in Consumer Brands," said Shrey Sehgal, co-founder of Bakingo.
The company focuses on providing premium-quality cakes and desserts and has introduced international flavours. 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 over 100 stock-keeping units. Moreover, the company also has the unique ability to customise more than 200 cake designs and deliver them within 2 hours in 13 cities.
