Emergence of Dessert-based startups, Rapido’s Gaffe, and Nithin Kamath Holds Ground

India’s startup ecosystem is known for its obsession with scale and speed. But a different kind of business is rising - sweeter, calmer, and surprisingly profitable. Dessert-first brands are winning customers, margins, and investor attention.

Over the last two years, a wave of dessert-focused startups has quietly emerged and started making serious noise - both in terms of revenue and investor interest. Brands like Get-A-Way, NOTO, Frozen Bottle, Boba Bhai, and now even bigger entrants like Vadilal and Amul have jumped into dessert innovation, from healthy ice creams to Korean-style bingsu.

What’s driving this sudden boom? A big part of it is economics. Unlike traditional startups that chase scale first and profits later, dessert-led startups have lower operating costs, fewer SKUs, and high repeat consumption. This means they often reach profitability faster. Customer acquisition costs are lower, margins are better, and offline expansion is more controlled. Even at modest scale, these companies start printing cash.

Premium frozen desserts or artisanal baked goods often enjoy gross margins of 50-60%. The Indian sweets and desserts market was valued at over ₹60,000 crore in 2023. And it’s expected to keep growing at a steady pace, driven by urban consumption, gifting culture, rising disposable income, and nostalgia for traditional treats. On Swiggy and Zomato, desserts have been among the most consistently searched and ordered categories. Offline, premium mithai brands are opening outlets in airports, malls, and metros.

Naturals Ice Cream is a great example of this kind of capital-efficient growth. Started in 1984, Naturals grew profitably, with a focus on high-quality seasonal fruits, simple branding, and minimal marketing. It expanded through a tightly controlled franchise model and became a ₹300 crore+ brand without ever raising venture capital. Even today, Naturals is profitable and growing.

Another success story is Theobroma. What began as a small family-run bakery in Mumbai is now a nationwide chain with over 100 outlets and a successful IPO in 2023. According to its IPO filings, it clocked over ₹450 crore in revenue in FY23 and reported a net profit of ₹16 crore, showing that a dessert-first brand can scale without burning cash.

Then there’s Bakingo, a relatively younger bakery brand that’s been growing rapidly in metro cities. With a hub-and-spoke model, Bakingo delivers fresh cakes within hours and is now operational in more than 13 cities. Its parent company, FlowerAura, crossed ₹100 crore in revenue in FY23, and Bakingo accounts for a growing chunk of that.

Walko Food Company, which owns brands like NIC Ice Creams, recently acquired Meemee’s Ice Creams to enter the artisanal vertical. The move signaled a growing investor interest in premium and niche frozen desserts. Earlier, Biryani By Kilo acquired Get-A-Way, a healthy frozen dessert brand. BBK reported that Get-A-Way added a fast-growing health-conscious layer to their offerings, helping them tap into younger, urban consumers.

Curefoods, another food delivery brand, is seeing this shift first-hand. It clocked ₹746 crore in revenue in FY25 and reported that its dessert-led income grew 95% year-on-year. It operates brands like CakeZone, and desserts now form a crucial part of its portfolio. The company is building what it calls “a dessert cloud” - a network of kitchens that focus only on cakes and sweets for online delivery.

But it’s not only about demand. The economics also work better than many other F&B categories. Take the example of Dessert & Co., which reached operational breakeven within 18 months. They sell over 3 lakh units a month, with more than 60% of customers returning in under 45 days. Get-A-Way claims to have reached operational profitability in under two years. Investors see this as a low-burn, high-repeat category with real potential to build sticky brands.

The biggest validation, of course, is funding. Over a dozen dessert-first startups have raised funding in the past 18 months. Some of them are from marquee funds, others from family offices that understand Indian consumer behavior deeply. In 2024, Boba Bhai raised $1.5 million, Get-A-Way bagged funding from sharks like Aman Gupta and Ashneer Grover, and newer D2C dessert brands are popping up every month.

But it’s not without challenges. Scaling desserts means controlling quality across locations, managing cold chain logistics, and standing out in a cluttered market. Brand recall is everything. And as the space heats up, differentiation will become harder. Getting shelf space in modern trade is also expensive.

But compared to many other D2C sectors, dessert brands have one big thing going for them: joy. They don’t have to convince people to buy. They’re entering moments of celebration and craving. That makes the job easier.

As Indian economic power continue to grow, people will spend more money on feel-good items, memorable birthday surprises, and impulsive buys.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Golmal Hai Bhai Sab Golmal Hai”: Maharashtra Minister Poses As Rider, Catches Rapido Flouting Bike Taxi Ban

In a scene straight out of a sting operation, Maharashtra Minister Ravindra Waikar booked a Rapido ride under a fake name to bust illegal bike taxis still plying in Mumbai.

When the bike arrived outside Mantralaya, the Minister revealed himself and schooled the rider on flouting state regulations. While bike taxis remain officially unregulated in Maharashtra, this undercover act has definitely put Rapido in the hot seat.

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“Jhukte Mere Saamne Takhto Taaj”: Jio Financial Services Not A Threat To Zerodha, Says Nithin Kamath

Zerodha’s Nithin Kamath isn’t losing sleep over Jio Financial’s entry into stockbroking, even with BlackRock backing them.

While he acknowledges Jio’s massive reach, Kamath insists deep pockets don’t guarantee dominance in India’s retail broking game. In his view, trust and user experience still trump muscle and money.

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“Hum Saath Saath Hai”: Zoho Acquires Asimov Robotics Amid Deeptech Push

Zoho is stepping into the robotics game with its acquisition of Kerala-based Asimov Robotics, aiming to supercharge its deeptech R&D.

The move coincides with Asimov’s new deeptech product studio in partnership with KSUM - designed to foster innovation among startups. All this unfolded at the grand opening of Zoho’s new Kottarakkara office, making it a big day for Kerala’s tech scene.

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“Papa Kehte Hai Bada Naam Karega”: Meesho Files DRHP Via Confidential Route For Up To $1 Bn IPO

Meesho has quietly filed for a $1 billion IPO through the confidential route, marking a major milestone in its growth journey.

The offering includes a fresh issue worth ₹4,250 Cr, alongside an OFS component. Fresh off its return to Indian shores, Meesho seems ready to make a bold public market debut.

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1. Luma Fertility has raised $4M in seed funding to revolutionize fertility care in India. The round was led by Peak XV’s Surge, with backing from Ameera Shah and Vijay Taparia.
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2. Maieutic Semiconductor has raised $4.15M to fast-track chip design using its GenAI-powered copilot for analog ICs. The round was co-led by Endiya Partners and Exfinity Venture Partners to boost engineering and speed up go-to-market.
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3. AI insights startup GobbleCube has raised $3.5M in a pre-Series A round led by InfoEdge Ventures. The funds will fuel product expansion, AI upgrades, and a sharper global go-to-market push.
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4. Protein-first nutrition brand FitFeast has raised ₹5.5 Cr in seed funding led by IPV and welcomed cricketer Shane Watson as an investor. The funds will power its digital expansion, product launches, and wider metro presence.
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