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Gurgaon based MilkBasket is giving a tough competition to Bigbasket especially in Delhi/NCR
Dailyninja acquisition by Bigbasket is almost complete, founders will join BB team
Amazon India and Swiggy were also in the race to acquire MB
The Developments so Far
According to a report in The Times of India, Bigbasket is in talks to buy Milkbasket, which is being valued at less than $15 million. As of now it stands at 40,000-50,000 deliveries per day. Milkbasket is currently operating in Delhi-NCR market, Bengaluru, and Hyderabad. It was Milkbasket’s aggressive marketing that prompted Bigbasket to expand its operations and focus more on Bigbasket Daily App
Milkbasket’s strategy of taking orders till 12 in the night and delivering the items before 7 AM worked wonders for them. The refund for the damaged items was instant, striking instant chord with the consumers. More and more consumers then started using the Milkbasket App for their daily needs.
Although Milkbasket ($15M), is relatively small when we compare it with Bigbasket (valued at over $1.2 Billion).
Bigbasket is in the process of consolidating its fresh food delivery business. It is in the last stage of taking control of Milkbasket and Dailyninja. Even the big players like Amazon India and Swiggy also had offers of acquisition but the talks didn’t materialize. According to reports the acquisition of Dailyninja is almost complete and the founders of Dailyninja will be joining the BB team.
According to sources the main reason why Bigbasket is worried is that the big players like Amazon, Swiggy, Flipkart and Reliance are venturing into the same segment. By acquiring MB it will have a strong base in Delhi/NCR and with Dailyninja it will have an advantage in Bangaluru.
India’s largest grocery startup, BigBasket, operated by Supermarket Grocery Supplies Pvt. Ltd, is currently the market leader in the online grocery segment
Recently, The Brand Global team has reported that Zomato and Grofers would be delivering essential items in a partnership during the national lockdown. Our team also notified that the online companies are hiring thousands of people to cater to the spike in demand amid lockdown.
The ET has reported now that the food delivery platform Zomato is in talks to buy the Softbank backed online grocery startup, Grofers.
The merger between the two entities will be a significant consolidation move in India’s consumer internet sector. The all-stock deal is expected to close at approximately $750M.
SoftBank, the Japanese Vision Fund, which has the largest stake in Grofers, may further invest around $100-200 million in the merged entity.
Uber, in which SoftBank has invested considerable amount had in February, sold its India food delivery business UberEats to Zomato.
In just a few months, this would be another significant acquisition by Zomato after Uber eats
In January this year, Zomato announced that it had secured $150M in fresh funding from Ant Financial, which is a subsidiary of Chinese firm Alibaba.
Zomato is currently valued at around $3.2 billion, while Grofers was at $650M in December 2019.
Zomato - Indian restaurant aggregator and food delivery startup
Founders - Deepinder Goyal, Pankaj Chaddah Founding Year – 2008 Location - DLF Phase V, Gurugram, India Website - https://www.zomato.com/ncr
In the Indian Online Grocery segment, the merged entity is going to give a fierce competition to BigBasket, which is one of the most prominent players in this segment. BigBasket had earlier explored the possibility of a potential merger with Grofers, but the talks failed. Even Amazon held some rounds of negotiations with BigBasket, but that could not materialize.
