Paleoo Bakes on Shark Tank India: “A 40% Profit Margin!”, Sharks React to Paleoo Bakes’ Growth

Desserts have always been seen as guilty pleasures, loaded with sugar, dairy, and gluten. But Paleoo Bakes, a Mumbai-based brand, is changing that perception.

Founded in 2019 by mother-daughter duo Simran Bapu and Tina Bapu, the company offers gluten-free, dairy-free, and sugar-free cakes and treats. Their goal? To let people enjoy desserts without compromising on health.

Their cakes have even caught the attention of Bollywood celebrities and cricketers. When Badshah and Shilpa Shetty appeared on The Kapil Sharma Show, they gave a shoutout to Paleoo Bakes, proving its growing popularity among fitness-conscious celebrities.

The company currently delivers 2,000 orders per month and boasts an impressive shelf life of 30 days for cakes and up to six months for other products.

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Tina Bapu, a passionate baker, always dreamed of creating delicious yet guilt-free desserts. Her daughter, Simran Bapu, a certified nutritionist specializing in diabetes and cardiovascular health, had seen firsthand how difficult it was for people to resist sweets—even when their health was at stake.

So, they combined their expertise to create Paleoo Bakes.

• Simran researched healthy ingredients and set strict guidelines for what could be used.
• Tina experimented, failing multiple times before finally creating cakes that met both taste and health standards.
• Friends and family were taste testers, helping refine the recipes until they were market-ready.

After months of trial and error, they perfected their formulas, and Paleoo Bakes was born.

Paleoo Bakes has grown steadily year over year, proving that there’s strong demand for healthy dessert alternatives.

Paleoo Bakes’ Annual Sales Growth

• FY 2021-22: ₹9 lakh
• FY 2022-23: ₹33 lakh
• FY 2023-24: ₹95 lakh
• FY 2024-25 (Till October): ₹1.575 crore

Paleoo Bakes’ Annual Sales Growth

• FY 2021-22: ₹9 lakh
• FY 2022-23: ₹33 lakh
• FY 2023-24: ₹95 lakh
• FY 2024-25 (Till October): ₹1.575 crore

Paleoo Bakes’ Sales Distribution

• 55% from their own website
• 31% from food delivery platforms (Zomato, Swiggy)
• 14% from B2B sales (cafés and restaurants)

The brand currently operates a single cloud kitchen in Mumbai but plans to expand to more locations soon.

With a strong Instagram presence (20,000 organic followers), the brand receives a large share of orders via WhatsApp and direct messages.

The founders entered Shark Tank India with confidence, requesting, ₹1 crore for 6.5% equity, valuing their startup at ₹15.38 crore.

Their 40% profit margin immediately caught the sharks’ attention. Despite the premium pricing (cakes starting at ₹1,350), the brand had built a loyal customer base through word-of-mouth and social media marketing.

However, the sharks had concerns about scaling and competition.

• Shark Aman Gupta and Namita Thapar stepped out, feeling the healthy dessert market was too niche.
• They questioned whether Paleoo Bakes could scale beyond Mumbai while maintaining quality.
• Sharks Piyush Bansal, Vinita Singh, and Anupam Mittal were impressed but felt the pricing was too premium for mass adoption.
• They suggested the brand expand its product line to appeal to a broader audience.
• With many dessert brands now offering “healthy” options, the sharks questioned how Paleoo Bakes would differentiate itself.

Despite these concerns, Piyush, Vinita, and Anupam saw potential and made an offer.

The initial offer was ₹1 crore for 10% equity + 1% royalty on sales. After some back-and-forth, shark Piyush removed the royalty but then withdrew from the deal entirely.

The final deal was ₹1 crore for 9% equity with a 1% royalty, which the founders accepted from the sharks Vinita and Anupam.

Even with reservations about pricing and scalability, the sharks believed in the brand’s potential.

A Growing Health-Conscious Consumer Base

• More people are switching to gluten-free and sugar-free diets.
• The market for healthy indulgences is expanding, especially among fitness enthusiasts.

Strong Brand Positioning

• A direct-to-consumer approach through Instagram and WhatsApp has proven effective.
• The high-profile celebrity endorsements have given Paleoo Bakes an aspirational brand image.

Expansion into B2B and Quick Commerce

• Selling to cafés, restaurants, and retail stores can drive volume sales.
• Partnering with Blinkit and Zepto can increase accessibility.

With fresh funding and two experienced sharks onboard, the brand is focused on:

Opening More Cloud Kitchens

• Expanding beyond Mumbai to cities like Delhi, Bangalore, and Hyderabad.

Introducing New Products

• Creating more affordable dessert options to appeal to a wider audience.
• Launching packaged healthy snacks to increase retail presence.

Strengthening Digital Marketing

• Boosting paid social media campaigns to drive more online orders.
• Collaborating with fitness influencers to expand brand reach.

Premium Pricing Can Work – But Needs a Strategy – The sharks questioned pricing, but a loyal niche audience can sustain high margins.

Social Media Is a Powerful Sales Tool – WhatsApp and Instagram drove a majority of their sales, proving the power of organic marketing.

Scaling a Niche Product Requires Smart Expansion – More cloud kitchens, B2B partnerships, and new product lines will help reach a larger audience.

Paleoo Bakes isn’t just selling desserts—it’s reshaping how people think about indulgence and health.

With the Sharks Vinita Singh and Anupam Mittal as investors, a growing customer base, and ambitious expansion plans, the brand is on a strong path toward national and global recognition.

If they can balance pricing, scale operations, and expand distribution, Paleoo Bakes could become India’s go-to brand for healthy indulgence.