Highlights
Bakingo Reports 43% Growth Despite Increased Losses
The online bakery brand Bakingo has announced an impressive 43% year-on-year growth for the fiscal year ending March 2024. However, this success comes with a marginal increase in losses as the company pursues expansion.
Financial Performance
Bakingo’s revenue from operations rose significantly by 43%, reaching Rs 208.7 crore in FY24, compared to Rs 145.7 crore in FY23, according to its consolidated financial statements obtained from the Registrar of Companies (RoC).
About the Company
Founded by Himanshu Chawla, Shrey Sehgal, and Suman Patra, Bakingo specialises in a diverse range of cakes and desserts. Its product offerings include:
- Signature Cheesecake
- Gourmet Cakes
- Jar Cakes
- Over 100 SKUs
Product sales represent the sole source of revenue for Bakingo.
Expenditure Overview
In FY24, the cost of product procurement made up 42.2% of Bakingo’s total expenses, increasing by 43% to Rs 90 crore. Additionally, other notable expenses included:
- Employee benefits rose by 40% to Rs 31.6 crore
- Advertising expenses increased by 38% to Rs 27.7 crore
- Platform commission fees surged by 65% to Rs 26.2 crore
Overall, Bakingo’s total expenses escalated by 46%, amounting to Rs 213.8 crore in FY24, compared to Rs 146.3 crore in FY23.
Impact on Profitability
As a result of the increased costs in employee benefits, advertising, and procurement, Bakingo’s losses heightened to Rs 5.3 crore in FY24. The company’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin stood at -6.05% and -0.98%, respectively. The expense-to-revenue ratio was noted at Rs 1.02, with total current assets reported at Rs 96.5 crore for FY24.
Funding and Valuation
Bakingo has successfully raised $16 million (Rs 130 crore) to date, in its initial funding round led by Faering Capital last year, at a valuation of Rs 571 crore. According to estimates by Startup Superb, its enterprise value to revenue multiple is currently pegged at 2.7X.