Bakingo, an online bakery company, saw its revenue grow by 43% year on year in the fiscal year ending March 2024. However, as the Gurugram-based company expanded, its losses increased slightly over time.

Bakingo's operating revenue climbed by 43% to Rs 208.7 crore in FY24, from Rs 145.7 crore in FY23, according to consolidated financial documents received from the Registrar of Companies (RoC). Bakingo, co-founded by Himanshu Chawla, Shrey Sehgal, and Suman Patra, provides a variety of cakes and desserts, including its signature cheesecake, gourmet cakes, jar cakes, and more than 100 SKUs. Bakingo's sole revenue source was the sale of these products.

Product procurement costs made up 42.2% of the bakery's overall expenses. This cost increased by 43% to Rs 90 crore in FY24. Employee benefits climbed by 40% to Rs 31.6 crore, while advertising expenses rose by 38% to Rs 27.7 crore. Platform commission fees increased by 65%, to Rs 26.2 crore. Overall, Bakingo's expenses climbed by 46% to Rs 213.8 crore in FY24, up from Rs 146.3 crore in FY23.

Employee benefits, advertising, and procurement expenses grew faster than revenue, resulting in losses of Rs 5.3 crore in fiscal year 24. The ROCE and EBITDA margins were -6.05% and -0.98%, respectively. Bakingo's expense-to-revenue ratio was Rs 1.02, and its total current assets were Rs 96.5 crore in FY 24. 

Bakingo has secured $16 million (Rs 130 crore) in funding, with the first round led by Faering Capital last year at a valuation of Rs 571 crore. Fintracker assessed an enterprise value-to-revenue ratio of 2.7X.

The increase in revenue over the last year appears to be due to a stronger ability to improve operations. In a discretionary business with severe competition, we believe Bakingo must continue to improve its brand, quality perception, and distribution to grow. For the time being, it appears to be merely a branded service for people who prefer to shop at a single location rather than a local shop or bakery. Signature deals, increased word-of-mouth, and possibly even packaging are all avenues for improvement.