The site of the bombing was the German Bakery, a two-decade-old quaint and popular establishment in Pune. The bakery, situated on the ground floor of a corner building in the Koregaon Park area of Pune, was reduced to rubble, though the rest of the building was left intact. At the time of the explosion, the bakery's limited seating areas were full of students and foreign visitors from the nearby Osho Ashram. A security alert had been issued in October 2009 for a Jewish Chabad House in the vicinity of the German Bakery, but the German Bakery was not deemed to be at risk at the time. The bakery is located close to the which is frequented by foreigners.. 

Initial media reports indicated that an LPG cylinder used for cooking had caused the blast, but the Pune City Fire Brigade issued a statement that the cylinders at German bakery were intact. Security agencies confirmed shortly thereafter that the explosion was a terrorist strike.

As in the case of several terrorist bombings in India in 2008, the blast occurred on a Saturday evening at approximately 7.15PM (IST).

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