Gurugram-based online cake delivery startup Bakingo has successfully raised $16 million in its inaugural round of growth capital, courtesy of a strategic investment from private equity firm Faering Capital. This infusion of funds is set to propel Bakingo’s ambitious expansion plans, reinforcing its position in the market and enhancing its service offerings.
The primary allocation of the newly acquired capital will be dedicated to amplifying Bakingo’s distribution network, marking a substantial increase from 75 dark kitchens to 150. Simultaneously, the company is gearing up to make its presence felt in 10 additional cities, further broadening its reach and accessibility to a more extensive customer base.
In an official press release, Bakingo outlined its multifaceted approach to utilizing the funds to establish exclusive brand stores, providing customers with a firsthand experience of the delectable offerings. Additionally, Bakingo plans to leverage the investment to bolster its technological infrastructure, focusing on enhancing production efficiency, optimizing the supply chain, and refining forecasting capabilities.
Founded by Himanshu Chawla, Shrey Sehgal, and Suman Patra, Bakingo has carved a niche for itself in the online bakery space. The startup boasts an extensive array of cakes and desserts, ranging from its signature Cheesecake to Gourmet Cakes, Jar Cakes, and an impressive selection of over 100 SKUs. Renowned for its customization prowess, Bakingo offers more than 200 cake designs, committing to a remarkable delivery time of within 2 hours in 13 cities.
Bakingo’s recent operational expansion into Jaipur, Chandigarh, Lucknow, and several smaller cities, including Meerut, Panipat, Karnal, and Rohtak, signifies the brand’s commitment to reaching untapped markets and establishing a solid foothold nationwide.
Faering Capital, an Indian private equity firm with a formidable track record, has raised over $720 million across three funds. With partnerships established with 30 companies, Faering Capital has marked its fourth investment from its $346 million Fund 3. Notable entities within its portfolio include Go Digit General Insurance, Niva Bupa Health Insurance, Vastu Housing Finance, Nykaa, Plum, and Finova Capital.
The collaboration between Bakingo and Faering Capital is poised to catalyze the next growth phase for the online bakery, setting the stage for an exciting trajectory in the competitive world of e-commerce and dessert specialists.
