The blast hit the Sadr City, the same district where a massive truck bomb ripped through a wholesale vegetable market just two days before, killing at least 54 people.
There was no immediate claim of responsibility for Saturday's attack, but ISIL frequently targets Shiites, AFP reported on Sunday.
In an attempt to cause maximum casualties, the ISIL terrorist group often strikes areas such as markets and cafes where crowds gather.
ISIL overran large parts of Iraq in June 2014 and also holds significant territory in neighboring Syria.
Iraqi forces have since regained ground from extremists, but much of western Iraq remains outside government control.
Even before the ISIL offensive, bombings targeting civilians in Iraq were a major threat, killing hundreds of people a month.
With extremists occupied with fighting elsewhere, the frequency of blasts in Baghdad has declined since the ISIL offensive, but there have still been a number of major bombings in the city in recent months.