Mad Over Donuts (MOD) is a quick-service donut chain with 150+ stores in India that sells handmade, fully eggless donuts; the concept originated in Singapore and began in India in 2008.

This Startup Deep Dive explains what Mad Over Donuts does, how it makes money, who backs it, how it compares with rivals and what could go wrong, using publicly available information. It is educational and not investment advice. Last updated: October 2026.

Mad Over Donuts in Brief

• What it is: Mad Over Donuts is an Indian Donut QSR company.
• Who it serves: businesses, institutions, consumers, learners and public-sector buyers.
• Sells handmade, freshly topped, 100 percent eggless donuts, plus coffees and milkshakes (about 20 percent of sales)
• More than 150 stores in cities such as Mumbai (40), Bengaluru (39), Pune, Delhi, Chennai and Ahmedabad
• Introduces limited-time flavours about every 45 days, including a Kit Kat collaboration
• Funding: Not disclosed in public sources reviewed.

Mad Over Donuts Quick Facts

Figures marked “reported” come from published reports and may differ between sources; “Not disclosed” means no reliable public figure was found.

What Is Mad Over Donuts?

Mad Over Donuts operates in the Donut QSR space in India. Understanding a company like this starts with three questions: who is the customer, what painful problem is being solved, and why the solution is better than the alternatives. The sections below apply that lens to Mad Over Donuts.

• Sells handmade, freshly topped, 100 percent eggless donuts, plus coffees and milkshakes (about 20 percent of sales)
• More than 150 stores in cities such as Mumbai (40), Bengaluru (39), Pune, Delhi, Chennai and Ahmedabad
• Introduces limited-time flavours about every 45 days, including a Kit Kat collaboration
• Prices fixed around Rs 95-105 per donut, per one report

The Origin Story of Mad Over Donuts

Every company starts from a noticed gap and a team willing to commit to closing it. Strong origin stories are specific: a clear problem, a founding team with relevant skills, and an early product that real customers could test. Founder-market fit, meaning the team’s lived experience or technical depth in the domain, tends to predict how fast a young company learns.

• Founders: Lokesh Bharwani.
• The brand was created in Singapore in 2008 after R&D by bakers; ingredients and R&D are sourced from Singapore
• Lokesh Bharwani and a business partner (name not given) opened the first Indian outlet near New Delhi (Noida) in 2008
• Headquarters is unclear; one aggregator says Singapore, India operations started in Noida

Key Milestones and Challenges

No startup grows in a straight line. Early years usually involve slow adoption, product rewrites, hiring mistakes and funding gaps. In the Donut QSR sector the common turning points are a first paying customer, a regulatory approval, a successful product demonstration or a funding round that lets the team invest ahead of demand. How a team responds to setbacks says more about resilience than any single headline.

• 2008: First India outlet opens in Noida
• FY2019-20: Revenue of a little over Rs 60 crore, profitable per management
• April 2023: Enters Ahmedabad
• August 2024: Over 150 stores; plan to add 50 stores by end-2024
• January 2026: Interim stay from Bombay High Court on a Rs 57.29 crore GST demand
• February 2026: Reported to be seeking to sell a minority stake to a private equity investor

Mad Over Donuts Funding and Investors

Funding history shows how much outside confidence a company has attracted and how long it can operate before needing more capital. Figures below are reported and may differ between sources; valuation figures are estimates unless the company has confirmed them.

• No venture rounds found
• February 2026: seeking a minority (possibly majority) stake sale; advisor Lodha Capital Markets; valuation not disclosed

How Does Mad Over Donuts Make Money? (Business Model)

A business model describes who pays, how often and how much it costs to serve them. Strong models show repeat usage, improving margins with scale and acquisition channels that do not depend only on paid spend. Weak models show one-off sales, rising costs and growth that stops when spending stops. For companies selling to businesses, institutions, consumers, learners and public-sector buyers, sales cycles and contract size matter as much as headline growth.

• Quick-service outlets from 80 sq ft to under 1,000 sq ft
• Donuts drive most sales; beverages about 20 percent
• Online delivery integration; frequent limited-edition launches
• Franchise structure not discussed in sources read

The Numbers: Mad Over Donuts Financials

Financial figures show whether growth is turning into a self-sustaining business. Small and private companies often disclose little, so any number below is included only if it was found in public reporting.

• FY2019-20: revenue a little over Rs 60 crore, profitable (management statement)
• FY24 and FY25 revenue and profit: not found
• Rs 57.29 crore GST demand under dispute (interim stay, January 2026)

Market Opportunity for Mad Over Donuts

Market size is easy to exaggerate, so a useful approach separates the total market from the portion a company can realistically reach with its current product and distribution. The main forces behind demand in this sector are rising digital adoption, cloud and mobile penetration, growing enterprise technology spending, government digitisation programmes and a deep pool of engineering talent. Each of these widens the opportunity, but capital efficiency and execution decide who captures it.

• Eggless and dessert QSR is a niche with room for more brands, per the CEO
• Other dessert chains such as Belgian Waffle and Theobroma attracted large valuations (referenced in the 2026 report)

Technology and Product at Mad Over Donuts

Technology is rarely the whole moat, but it drives speed, cost and customer experience. A practical way to assess it is to separate the capability the company controls from the commodity infrastructure it rents. In this sector the important factors are product quality, data and integration depth, security, scalability and the speed of shipping improvements.

• Augmented reality game placing customers' faces on a donut, available in stores
• Online delivery integration

Team and Culture at Mad Over Donuts

Teams are the most important and least measurable asset of a young company. Look at how complementary the founders’ skills are, how deep the second layer of leadership is, and how the company hires and retains specialists. Culture shows up in small repeated behaviours: how quickly bad news travels upward and whether commitments to customers are kept.

• Lokesh Bharwani, founder
• Tarak Bhattacharya, Executive Director and CEO (2024)

Mad Over Donuts Competitors: Competitive Landscape

A fair competitive analysis names direct rivals, adjacent players who could move into the space, and the customer’s default alternative. Durable advantages include proprietary data or technology, licences and approvals, brand trust, switching costs and cost leadership.

Risks and Challenges for Mad Over Donuts

• Rs 57.29 crore GST dispute
• Competition from global donut chains and diversified dessert brands
• Store operations, locations and hiring named as challenges by the CEO
• Ownership and financials are poorly disclosed
• Competition: low barriers to entry and well-funded rivals can compress pricing and slow growth.
• Funding risk: technology businesses often burn cash before reaching profit and depend on investor appetite.

Risk is not a reason to avoid a company; it is a reason to price it correctly and to monitor the right indicators over time. Regulation in this sector is shaped by data protection rules under the Digital Personal Data Protection Act, sector regulators, consumer protection law and IT rules.

Mad Over Donuts Growth Outlook: What to Watch

• Planned 50 new stores by end-2024
• Exploring minority stake sale to fund expansion
• Key indicators: recurring revenue, customer retention, gross margin, customer acquisition cost and runway.
• Funding position: Whether Mad Over Donuts can reach its next milestone before needing new capital.
• Regulation: Changes from data protection rules under the Digital Personal Data Protection Act, sector regulators, consumer protection law and IT rules.

Industry Context: Where Mad Over Donuts Fits

India's technology startup ecosystem is one of the largest in the world, supported by cheap data, a large base of smartphone users, digital public infrastructure and a deep engineering talent pool. Companies now build for education, software, mobility, logistics, agriculture, defence, media and more, selling both to Indian customers and abroad.

Durable technology companies usually combine a clear customer problem with repeatable distribution and disciplined unit economics. Growth funded only by spending tends to fade, while products that customers keep using and paying for build compounding advantages.

For readers new to this field, a useful habit is to separate announcements from evidence. A plan, a partnership or a funding headline describes intent, while a delivered product, a paying customer or an audited financial statement describes results. Comparing the two over time shows how reliably a company turns promises into outcomes.

Bull Case and Bear Case for Mad Over Donuts

An investment thesis is a short, testable statement of why a company could become far more valuable, together with what evidence would prove it wrong. The points below are general to this sector and are not forecasts for Mad Over Donuts.

Bull case

• A large and growing base of digital users and businesses expands the addressable market.
• Recurring revenue and strong retention can compound growth.
• Selling into global markets widens the opportunity beyond India.

Bear case

• Heavy competition can compress pricing and margins.
• Dependence on external funding can force painful cost cuts.
• Regulation or platform changes can disrupt a product quickly.

Lessons Founders and Investors Can Take from Mad Over Donuts

Studying a company in the Donut QSR space offers lessons that go beyond any single firm. The points below are general lessons for the sector and are not claims about Mad Over Donuts.

• Solving a clear, frequent customer problem matters more than adding features.
• Retention and repeat usage are better health signals than sign-ups.
• Disciplined spending extends runway and keeps options open when funding tightens.
• Distribution, not just product quality, decides who wins in crowded markets.
• Building trust through data protection and reliability is part of the product.

How to Evaluate Mad Over Donuts as a Startup

• Customer clarity: Can Mad Over Donuts name its customer and the problem it solves in one sentence?
• Evidence of demand: Look for repeat customers, signed contracts or measurable usage rather than announcements alone.
• Economics: Check whether margins improve as volume grows.
• Execution: Compare announced timelines with what has actually been delivered.
• Funding runway: Estimate how long current capital lasts at the present spending rate.
• Regulatory standing: Confirm required approvals are in place.
• Customer concentration: Check whether a few customers account for most of the revenue.
• Management depth: Look for experienced leaders beyond the founders and a stable core team.

The Takeaway

Mad Over Donuts is part of India’s growing Donut QSR ecosystem. The useful lesson from studying it is the discipline of asking structured questions about customers, economics, advantage and resilience. Companies that answer them well, repeatedly and under pressure are the ones that endure. Readers should treat any single report, ranking or funding headline as one input among many, and should re-check key facts against recent company announcements. Because public information on young companies is often limited, patience in verifying claims is part of good analysis. Public sources can also describe the same company in different ways, so it is worth checking dates, definitions and whether a figure refers to revenue, total income or transaction value, and whether it covers one entity or a wider group, before drawing conclusions. Small differences in rounding, currency conversion or reporting periods can also change how a figure reads. Comparing the same figure across several recent reports helps show whether it is stable or has changed over time. This article is educational and is not investment advice.

• Clear customers and repeat demand matter more than announcements.
• Regulation and capital needs shape how fast a startup in this sector can grow.
• Track a few leading indicators over time rather than one headline metric.

Mad Over Donuts FAQs: Frequently Asked Questions

What is Mad Over Donuts?

Mad Over Donuts (MOD) is a quick-service donut chain with 150+ stores in India that sells handmade, fully eggless donuts; the concept originated in Singapore and began in India in 2008. It is profiled in the Startup Deep Dive series, which explains business model, funding, competitors and risks.

Who founded Mad Over Donuts?

Mad Over Donuts was founded by Lokesh Bharwani, and the company reports a founding year of 2008.

How much funding has Mad Over Donuts raised?

No reliable total funding figure is disclosed in the public sources reviewed. Funding figures are reported and may differ between sources, so readers should check the latest company announcements.

How does Mad Over Donuts make money?

Mad Over Donuts earns revenue from its Donut QSR products and services sold to businesses, institutions, consumers, learners and public-sector buyers. The exact revenue mix is described in the business model section and is not fully disclosed publicly.

Who are the competitors of Mad Over Donuts?

Reported rivals include Krispy Kreme, Dunkin'. See the competitor comparison above for how they differ.

What are the main risks for Mad Over Donuts?

Main risks include competition: low barriers to entry and well-funded rivals can compress pricing and slow growth, funding and capital needs, competition and regulation by data protection rules under the Digital Personal Data Protection Act, sector regulators, consumer protection law and IT rules. This is educational content, not investment advice.

Related Startup Deep Dives: PB Healthcare — PB Fintech’s healthcare arm reportedly raised $218M seed round | Dunzo — Dunzo lost Rs 1,802 crore on Rs 227 crore revenue in FY23 before shutting down. Browse the full Startup Deep Dive series.

Source

Source: Publicly available data, published reports, industry research, and other credible sources.