D2C brand the Baker’s Dozen secures $5M to expand bakery capacity

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The Baker’s Dozen, a D2C bakery brand, has recently raised around $5 million in a mix of debt and equity, headed by Fireside Ventures. The funding raised is expected to be used for investing in R&D, hiring C-suite level executives, updating the brands technology, and expanding its distribution network, including demand forecasting.

As per sources, a significant portion of this amount is planned to expand its bakery capacity.

While speaking about the funding, Sneh Jain, Co-founder, The Baker’s Dozen said that the company had demonstrated sales growth of 5X to around Rs. 30 crores ($3.7 million) in FY22 as the firm made substantial progress online via ecommerce marketplaces like BigBasket and Amazon and via quick commerce companies like Swiggy.

He further said that no real national brands were offering high quality and premium bread and cakes. There are brands like Britannia and Modern Breads that work at mass level. On the contrary, there are local bakeries that are restricted to a smaller area, this is where Baker’s Dozen felt a gap.

Established in 2013 by Jain and his spouse Aditi Handa, the top baker at The Baker’s Dozen. The startup makes cakes, cookies, sourdough bread, and crackers from a factory near Ahmedabad.

He further explained by breaking the firm’s journey into two parts – the first part between 2013 to 2019, where the firm understood the consumers and enlarged its portfolio.

During this phase, the firm added cookies, cakes, and crackers and enlightened its distribution network. And the second part, the last two years where the firm scaled up with new technology and products.

According to Jain, the main reason behind the scaling of 5 times is because of the changes The Baker’s Dozen brought to its packaging with the new technology known as modified atmosphere packaging.

Source Credit - https://economictimes.indiatimes.com/tech/funding/d2c-bakery-brand-bakers-dozen-raises-5-million-in-funding-from-fireside-ventures/articleshow/92693762.cms