Woman Rejects IIM Kozhikode MBA Offer to Build Bakery Business with Rs 5,000, Now Earns Rs 2 Crore Annually

Megha Sarayan, an economics graduate from the University of Calcutta, chose an unusual career path after turning down an MBA offer from the Indian Institute of Management (IIM) Kozhikode. Instead of pursuing a management degree, she decided to focus on the bakery business she had started from her mother’s kitchen. What began with an investment of just Rs 5,000 in 2018 has grown into a successful food business reporting annual revenue of Rs 2 crore. Sarayan also achieved a major milestone when she appeared on Shark Tank India Season 5 and secured an investment of Rs 1 crore for her business.

How Megha Sarayan Started Her Bakery Business

Sarayan’s journey into entrepreneurship began during her college days, when she attended a food workshop while studying economics. She developed an interest in baking and initially prepared cakes for her friends and family. What started as a hobby soon became a business idea after a friend encouraged her to sell her cakes.

She decided to take the first step by listing her bakery on Zomato when the food delivery platform was expanding in Kolkata. With only one product, a chocolate truffle cake, on the menu, she began accepting orders from her mother’s kitchen.

The beginning was modest. Her bakery earned around Rs 3,000 in its first month. However, the experience gave her an opportunity to understand customer preferences and build confidence in her business idea.

Starting Land Of Cakes With Just Rs 5,000

In 2018, Sarayan invested Rs 5,000 from her personal savings to rent a small space and establish her bakery business, Land Of Cakes. She started without external investors or experienced business mentors and relied on her own efforts to manage the venture.

In the early days, she prepared cakes only after receiving confirmed orders. This approach helped her control expenses and avoid unnecessary waste. As more customers discovered her products, word-of-mouth recommendations helped the business grow.

The bakery gradually began receiving around seven to eight orders daily. An exclusive arrangement with Zomato reportedly improved its visibility and increased the number of daily orders to around 25, according to StartupPedia.

What started as a small operation in her mother’s kitchen was slowly turning into a promising business.

Facing Challenges During the Covid-19 Pandemic

Like many small businesses, Land Of Cakes faced serious difficulties during the Covid-19 pandemic. Lockdown restrictions disrupted operations, and Sarayan had to let go of her employees.

However, the changing circumstances also created opportunities for online food delivery businesses as several physical bakeries were forced to close temporarily.

During this difficult period, Sarayan received support from her family. Her father and brother helped her fulfil customer orders, allowing the business to continue operating despite limited resources.

According to StartupPedia, Sarayan recalled that the family sometimes had to bake continuously to meet customer demand. Their support helped her keep the business running during a period of uncertainty.

Preparing for CAT While Baking Up to 40 Cakes a Day

Alongside managing her bakery, Sarayan was also preparing for competitive examinations. Her routine required considerable discipline, as she had to divide her time between running the business and studying for the Common Admission Test (CAT).

In an interview with YourStory, she recalled baking between 25 and 40 cakes a day while preparing for the examination. She reportedly spent more than six hours baking and used the remaining time to study.

Her efforts paid off when she secured admission to IIM Kozhikode for an MBA. For many students, admission to a prestigious management institute is a major career goal. However, Sarayan faced a difficult decision because her growing bakery business also needed her attention.

Why Megha Sarayan Rejected the IIM Kozhikode MBA Offer

Although Sarayan had secured admission to IIM Kozhikode, accepting the offer would have required her to leave Kolkata and move away from the business she had worked hard to establish.

After discussing the decision with her family, she decided to reject the MBA offer and continue building Land Of Cakes.

Speaking to StartupPedia, she explained that she had invested too much time and effort into the venture to abandon it at that stage. She also believed that leaving the business could have forced her to shut it down.

Sarayan later told YourStory that she had initially hoped to study at IIM Calcutta, which would have allowed her to continue managing the bakery while pursuing her MBA. However, she eventually chose to concentrate on the business full-time from 2021.

Rather than following the conventional route of completing an MBA before building a career, she decided to learn through practical business experience and focus on expanding the company.

From a Small Bakery to a Growing Food Brand

After deciding to concentrate on the business, Sarayan continued working on expanding Land Of Cakes. The company gradually increased its operations through cloud kitchens and developed a wider customer base.

In 2024, she opened a 15-seater cafe called D’Go in Kolkata’s Salt Lake area, according to StartupPedia. The cafe attracted students and corporate professionals, while cheesecakes and brownies emerged as some of the business’s popular products.

The venture later expanded into a broader food and dessert brand called Modge by Land of Cakes.

According to YourStory’s March 2026 report, the business operated cloud kitchens in Kolkata and Hyderabad, along with a physical outlet. Its product range included vegetarian cakes, desserts and savoury items, allowing the company to serve a wider variety of customers.

The expansion marked an important stage in the journey from a small home-based bakery to a more established food business.

Megha Sarayan Secures Rs 1 Crore Investment on Shark Tank India

Sarayan achieved another significant milestone when she appeared on Shark Tank India Season 5 to present her business.

According to Outlook Business, she secured an investment of Rs 1 crore from investor Anupam Mittal in exchange for a 9% equity stake in the business.

The investment represented an important step in the company’s growth journey. It also brought greater attention to the business she had developed from a small initial investment.

For Sarayan, the achievement came after years of managing orders, overcoming operational challenges, expanding the business and making difficult career decisions.

Megha Sarayan’s Success Story: A Business Built With Determination

Megha Sarayan’s journey from baking cakes in her mother’s kitchen to building a food business reporting annual revenue of Rs 2 crore demonstrates how a small idea can develop into a substantial venture over time.

She started with just Rs 5,000, earned around Rs 3,000 in her first month and gradually expanded her business through customer relationships, online delivery and new outlets. Along the way, she faced the challenges of the Covid-19 pandemic, managed demanding work and study schedules, and ultimately turned down an MBA offer from IIM Kozhikode to focus on her entrepreneurial ambitions.

Her story is not simply about rejecting a prestigious management degree. It is also about recognising an opportunity, committing to a business she had already started and learning through experience.

By choosing to build on her existing venture, Sarayan developed Land Of Cakes into a growing food brand and secured a Rs 1 crore investment on Shark Tank India Season 5. Her journey offers an example of how persistence, careful business decisions and a willingness to take calculated risks can help turn a modest beginning into a successful enterprise.