In the world of cakes and desserts, Fatema and Duriya Barodawala have made their mark with their unique startup, Cakelicious. From the bustling city of Kolkata, these mother-daughter duo have created a cake revolution that has captured the hearts and palates of cake lovers across India.
Their story is not just about cakes, but also about perseverance, passion, and courage. Fatema, a computer applications graduate, had always been interested in baking, and she used to make cakes for her family and friends. However, during the COVID-19 pandemic, she found the strength to turn her passion into a profession and leave an abusive relationship.
Together with her mother, Duriya, who is a head chef, Fatema started experimenting with cakes and came up with a novel concept of cake tubs. These cakes are not only flavorful but also come in a handy and portable packaging that ensures they remain intact during delivery. Cakelicious has grown from a home kitchen to two cloud kitchens and one retail store. They are available through various quick-commerce platforms, including Zomato and their own website.
Cakelicious offers more than 30 different flavors, including the popular Lotus Biscoff and Tiramisu cake tubs. These cakes are preservative-free and do not contain any pre-mix. They remain fresh for two weeks under -15 degree Celsius or below, which makes them an ideal choice for everyday sweet cravings.
In the latest episode of Shark Tank India, Cakelicious presented their pitch, asking for 25 lakhs for 5% equity. Their sales have been growing steadily, with July recording 2 lakhs, August recording 2.5 lakhs, and September recording 3 lakhs. Their best-selling cake is sold at ₹350, with a making cost of ₹140, gross profit of 60%, and a net margin of 40%. Last month, they had a profit of 80000, and their repeat rate is an impressive 80%.
The Sharks were impressed with Cakelicious's growth and vision, and Amit was the first to give an offer of 15 lakhs at 15% equity and 10 lakhs debt at no interest. The owners gave a counteroffer of 25 lakhs at 15% equity, which Amit declined. He then gave a counteroffer of 25 lakhs at 20% equity, which the owners accepted, and the final deal was closed.
The Sharks were not only impressed with Cakelicious's growth but also with the story of Fatema and Duriya. They saw the potential in their innovative cake tubs and the dedication of the founders. With Amit's investment, Cakelicious will be able to expand its reach and introduce more flavors to its customers.
Cakelicious is an example of how a small idea can grow into a successful business with the right team and support. The Sharks saw the potential in Cakelicious and invested not just in the company but also in the founders' vision and passion. Cakelicious has not only made cakes a part of celebrations but also a part of everyday sweet cravings.
In conclusion, Cakelicious is a story of hope, perseverance, and innovation. The founders, Fatema Barodawala and Duriya Barodawala, impressed the Sharks with their passion and dedication to their business. Their hard work and determination paid off as they secured a deal with Amit, who was willing to invest 25 lakhs for 20% equity in the company.
ALIPPO LEARNINGS:
Here are some key learnings that can help Cakelicious and other businesses grow:
- Focus on quality: Cakelicious's success is largely due to the quality of its cakes. By using fresh ingredients and avoiding preservatives and pre-mixes, they have created cakes that customers love. Maintaining high quality should be a top priority for any business, as it helps build a loyal customer base and sets you apart from competitors.
- Listen to customer feedback: Cakelicious has a high repeat rate, which means that customers are satisfied with their products. By listening to customer feedback, businesses can improve their offerings and build even stronger customer loyalty. Cakelicious could consider conducting surveys or offering incentives for customers to share their thoughts.
- Expand strategically: With Amit's investment, Cakelicious has the opportunity to expand its reach. However, it's important to do so strategically. Businesses should consider factors such as demand, competition, and logistics when deciding where to expand. They should also ensure that they have the resources to support the expansion.
- Build a strong team: Cakelicious's success is also due to the strength of its team. Fatema and Duriya have complementary skills, and they have built a team that shares their vision and values. Businesses should prioritize hiring and training employees who are passionate about the company's mission and are committed to delivering high-quality products and services.
- Embrace innovation: Cakelicious's cake tubs are a novel concept that sets them apart from traditional cakes. By embracing innovation, businesses can differentiate themselves and capture the attention of customers. However, it's important to balance innovation with practicality and ensure that new products or services are viable and meet customer needs.
