The online bakery brand recorded 35% revenue growth, but rising procurement, advertising and platform expenses continued to weigh on profitability.
Online bakery brand Bakingo reported a 35% year-on-year increase in revenue from operations to Rs 405.8 crore in FY26, compared with Rs 300.3 crore in FY25. However, its net loss more than doubled to Rs 36.9 crore during the fiscal year, as operating expenses grew faster than revenue.
Founded in 2016 by Himanshu Chawla, Shrey Sehgal and Suman Patra, Bakingo operates an online bakery business offering cakes and desserts, including cheesecakes, gourmet cakes and jar cakes. The company has expanded across more than 30 cities, supported by a network of over 100 kitchens and a catalogue of over 100 products. Bakery product sales remained its sole operating revenue source in FY26.
The company also earned Rs 7.3 crore through interest on investments and fixed deposits, taking its total income to Rs 413.65 crore.
Raw material procurement remained Bakingo’s largest expense, increasing 40% year-on-year to Rs 194.45 crore from Rs 138.7 crore. Employee benefit expenses also rose 40% to Rs 31.6 crore, while advertising expenditure increased 35% to Rs 75.4 crore.
Commission and platform fees surged 39% to Rs 53 crore. Additional costs, including delivery, transportation, outsourced support, power and fuel, further increased the company’s expenditure. Overall, total expenses grew 38.7% to Rs 450.5 crore in FY26 from Rs 324.7 crore in FY25.
Consequently, Bakingo reported a net loss of Rs 36.9 crore. Its return on capital employed (ROCE) stood at -39%, while its EBITDA margin was -7.48%. At the unit level, the company spent Rs 1.11 to generate every rupee of operating revenue. Its current assets stood at Rs 86 crore, including Rs 30 crore in cash and bank balances.
Bakingo has raised $26.5 million across two funding rounds, including a Rs 100 crore round led by existing investor Faering Capital in August 2026, at a reported valuation of $173 million.
With revenue scaling beyond Rs 400 crore, the next challenge will be improving margins and converting growth investments into sustainable profitability.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.
