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Reliance set to acquire MilkBasket for over $40 Mn

Saransh Pandey

Intern
  • February 18, 2021
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    Unlike the previous round talk that was not successful, Reliance and MilkBasket are close to signing the deal.

Reliance is all set to acquire online milk delivery startup MilkBasket. The Gurugram-based firm that delivers groceries, milk, and other everyday essentials has been looking for an acquisition for the past six-eight months. The talks have reached the last stage and both parties have agreed upon the contours of the deal.  

This is the second round of talks between the two companies. Unlike the previous round talk that was not successful, Reliance and MilkBasket are close to signing the deal. The size of the deal is in the range of $40-43 million. The initial talks of the second round of discussion cropped up last month when Kalaari Capital sold its stake to Mahendra Nahata-led MN Televentures.  

MilkBasket’s Chief Executive Officer and co-founder Anant Goel will join Reliance whereas the other co-founders will move after the completion of the transaction. MilkBasket has raised $33 million in total risk capital from Inflection Point Ventures, Mayfield India, Unilever, Beenext, Blume Ventures, Kalaari, Lenovo Capital, and a host of angels including several family offices. In the past, the company was also in talks with Amazon and BigBasket for acquisition. 

Founded in 2015, MilkBasket was hailed as a local innovation because of its subscription model in daily essentials. Unlike most e-commerce platforms, it has a sticky customer base (household) who buy almost every day. However, experts believe that MilkBasket was a late entrant in the e-grocery space and by then heavy-weights including SoftBank, Tiger Global, Alibaba and Mirae had taken their bets. 

As a result, there was almost no appetite to invest in the new models in the grocery space. This could also be noticed from casualties and stress acquisitions such as DailyNinja, Doodhwala, and RainCan. Several companies including Noida-based MrNeeds were also forced to cease operations.  

With this likely acquisition, independent plays in the grocery subscription commerce space would come to an end. Reliance will likely leverage the Goel-led company to ramp up its subscription commerce platform that has been on a pilot mode since last year. 

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