Breaking away from the norm, TBD’s repeated success in securing funding showcases a significant shift in industry dynamics. It not only elevates TBD’s position but also changes perceptions within the erstwhile low key bakery sector, signaling a new era of investor interest and growth opportunities in this space.
11th January 2024, India-wide release: The Baker’s Dozen (TBD), India’s leading artisanal bakery brand, has announced the closure of an INR 33 Crore Pre-series A Funding round. The investment round, spearheaded by industry heavyweights like Wipro Consumer Care – Ventures, Fireside Ventures, Mirabilis Investment Trust, and She Capital, marks a pivotal moment for TBD’s future market strategies and product diversification.
This strategic investment will be channeled towards expanding TBD’s presence beyond metros, targeting growing markets in non-metro and Tier-1 cities. A key focus will be on enhancing the mass-premium segment of TBD’s product range, reflecting the brand’s commitment to innovation and quality. Another portion of this strategic injection has also been earmarked for robust marketing and brand-building initiatives. This includes a well-balanced blend of online and offline campaigns, aiming to fortify TBD’s market position and amplify brand visibility.
With a remarkable 2X growth in ARR post its last funding, TBD is on a fast track to reshape the Indian bakery landscape. The brand sets its sights on becoming a 500 Crore profitable entity within five years, with plans to challenge the status quo in the Indian bakery industry and make headway into the Middle East market.
Crucially, from a sector-wide perspective, this funding round reflects strong investor confidence in TBD’s market potential, challenging the traditional view of the bakery industry being seen as small scale and less attractive for venture capital or private equity. TBD’s strategic emphasis on innovation and market growth, particularly with its alignment to the anticipated 11% CAGR of the bakery industry from 2023 to 2028, demonstrates a commitment to evolving consumer trends towards health and quality (As per Crisil’s report, the industry’s revenue is expected to reach Rs 1,800 – 1,850 billion by fiscal 2028 from 1,050 – 1,070 billion in fiscal 2023). Moreover, TBD’s focus on environmental initiatives like Plastic Neutral and Carbon Neutral practices aligns with the increasing consumer demand for sustainable business practices.
Aditi Handa, Co-founder & Head Chef, The Baker’s Dozen comments on the funding: “As a founder of The Baker’s Dozen, I am deeply humbled and energized by our latest funding round. This investment not only validates our mission to revolutionize the Indian bakery industry but also propels us towards our vision of becoming a global leader in artisanal bakery. Our commitment to blending traditional baking methods with modern, health-conscious innovations is at the heart of our growth strategy. Our journey towards sustainable and innovative bakery solutions continues, and we’re excited to expand our reach, bringing our unique bakery products to more customers in India and internationally.”
Sumit Keshan, Managing Partner, Wipro Consumer Care – Ventures says: “We are excited to lead this investment round in The Baker’s Dozen (TBD) and partnering with the company in its next stage of growth journey. We believe that TBD has created a strong franchise for artisanal bakery products which are greatly liked and admired by its consumers. TBD is looking to create an organised play across multiple categories in bakery within packaged food which is showing strong traction as a sector. Their approach towards authentic ingredients, no compromise on quality as well as consistency thru strong focus on modern manufacturing technology and processes makes them a standout with potential to make it big. Aditi and Sneh are highly focused on what they bring to the consumers and we are truly happy to partner with them in their journey. This is the 11th investment from our VC fund and first in the food space.”
Prayag Mohanty, Principal at Fireside Ventures, remarks on the investment: “The recent funding round for The Baker’s Dozen (TBD) amidst uncertain market environment reflects a strong investor belief in the brand’s potential to redefine the Indian bakery industry, historically overlooked by significant capital. Both Sneh and Aditi have an excellent understanding of consumer preferences, and by leveraging technology and strong supply chain strategies to create a model that blends tasty, better for you indulgent, long-lasting products with scalability, they have set a new standard in the sector, positioning them at the forefront of the phy-gital bakery revolution. TBD, with their delectable product offerings, has garnered immense customer love within a short span of time and we’re truly privileged to partner with them on their mission to become a global leader in the artisanal bakery space.”
Srinivas Seshadri, Head – Investments at Mirabilis Investment Trust mentions, “We, at Mirabilis, believe in the inexorable rise of the well-informed Indian consumer who seeks better choices personally and for the planet. TBD has shown that it is possible to build a high quality, clean label artisanal bakery offering at a national scale, while maintaining healthy unit economics. Aditi and Sneh bring in the right mix of expertise and passion to scale this up to the next level and we are delighted to partner with TBD in the next leg of growth.”
Anisha Singh, Founder, She Capital, further adds, “For years, we’ve watched TBD’s growth adventure in the artisanal bread scene with pure admiration. They’ve filled a gaping need in the industry, and Aditi and Sneh have been nothing short of trailblazers. TBD expertly positions itself between affordability, deliciousness, and health, crafting additive-free treats that Indian families can feel good about bringing home. Now, we’re thrilled to join their journey and lend our support to their unwavering upward trajectory and their rock-solid, high-growth path.”
