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Online bakery Bakingo is planning to invest Rs 40 crore to expand its production capacity along with going omnichannel, Himanshu Chawla, co-founder & director, Bakingo told ETRetail.
The brand is planning to expand its production facilities in cities like Bengaluru, Delhi, Kolkata, and Mumbai.
“At present, we have a 10,000 sq ft manufacturing unit in Bengaluru and we plan to expand it up to 25,000 sq.ft, similarly, we already have a 25,000 sq ft unit in Delhi and we plan to open another unit spreading across 15,000 sq.ft,” he elaborated.
“We have a small set up in Kolkata and Mumbai and this fiscal, we will be opening up new manufacturing units spread across 10,000 sq.ft and 15,000 sq.ft, respectively,” he further added.
From the present manufacturing units, the brand has the capacity to produce 1,000 cakes per day and with the expansion of the production facilities, it plans to produce 3,000 cakes per day.
By October, the brand also plans to open 30-40 EBOs within a year.
“We will be opening up with takeaway QSRs spreading across 500-600 sq.ft. Initially, we will start with metro and tier I cities and then subsequently, will penetrate deeper into tier II and beyond,” he asserted.
The CAPEX involved in opening these company-owned company-operated stores will stand at Rs 70-80 lakh and the brand will be offering more than 100 SKUs at these EBOs.
Apart from this, the brand is planning to expand its presence to cities like Kolkata, Chennai, Pune, Kanpur, Agra, Patna, Ludhiana, Patiala, Jalandhar, Ahmedabad, Indore, and Bhopal. It is also planning to double its dark kitchens from 75 to 150.
“We won’t be raising more funds as our recent funding of $16 million from private equity firm Faering Capital that we raised in November 2023 will be enough to fuel our expansion plans,” he said.
“For us, the vision is to create a Rs 1,000 crore national brand in the next five years,” he further added.
Currently, the brand has a presence in cities like Gurgaon, Delhi, Noida, Bangalore, Hyderabad, Mumbai, Jaipur, Chandigarh, Lucknow, Meerut, Panipat, Karnal, and Rohtak.
To meet the evolving consumer needs, the brand is also looking to expand its menu by introducing various savory options.
The brand, which closed FY 23-24 at Rs 210 crore and FY 22-23 at Rs 140 crore, is planning to grow 50-60 per cent this fiscal.
“Currently, our EBITDA profitability stands at 2-3 per cent with D2C and marketplaces both contributing 50 per cent revenue each,”
The brand, which earns 40 per cent of its revenue from North India, enjoys 45 per cent repeat orders on any particular day.
Currently, its CAC stands at Rs 450 for an average order value of Rs 1,000.
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