To augment its reach in online grocery segment, Bigbasket has acquired online milk delivery app DailyNinja, caters to around 1,10,000 customers transacting daily.
The acquisition will help Bigbasket to expand its offerings under BBDaily and improve delivery productivity. BBDaily is essentials-focused delivery service from BigBasket.
Bigbasket aims to break-even much sooner than planned by having an added access to DailyNinja’s network of 2000 milkman partners, Company CEO and Cofounder Hari Menon said.
The firm delivers a wide range of fresh fruits and vegetables, bread, dairy and eggs and breakfast cereals, tender coconut, personal care, and baby care products.
The acquisition is an opportunity for DailyNinja to grow its business to 2x within a month by leveraging Bigbasket’s supply chain capabilities.
“We are pleased to be a part of Bigbasket, this is a great outcome for all of our team members, shareholders and us founders. When we started DailyNinja 5 years ago, Bigbasket was the company we were hoping to emulate, and we are excited to be part of the BB Family now,” said Sagar Yarnalkar, CEO and co-founder, DailyNinja.
BigBasket is also looking to acquire Unilever Ventures-backed Milkbasket, which primarily sells milk. The Gurgoan-based Milkbasket is well funded standalone player in the space. It has already raised $26 million from Blume Ventures, Kalaari Capital, Mayfield and Beenext besides Unilever Ventures.
However, owing to the outbreak of coronavirus, the firm’s order size has seen a dip in the past few days. Prior to the disease outbreak, Milkbasket has been clocking about 40,000-50,000 deliveries per day.
With large players like Swiggy planning to foray into the space, the standalone firms like Milkbasket had no choice, but to consolidate.
Swiggy reportedly has plans to invest $100 million (over Rs 680 crore) for its subscription-based delivery business under Supr, which delivers milk and other daily essentials to consumers.
Swiggy had acquired Supr in 2018, though no official announcement has been made so far. The unit is already doing deliveries in six cities including Bengaluru, Mumbai and Delhi-NCR.
The acquisition will help Swiggy to deliver milk on a weekly, monthly or quarterly subscription model. Currently, 70 per cent of the orders made on Supr are for milk delivery services.
Swiggy had also raised $1 billion by foraying into micro-food delivery space through Swiggy Stores and subscription-based home-cooked meal service Swiggy Daily.
Swiggy is in direct competition with established players in the space such as Milkbasket, Daily Ninja and Big Basket. Swiggy has the potential to expand services to rural markets because of its huge logistics network. It currently caters to nearly 1.5 lakh customers, growing 10 fold over the course of six months
Reliance Industries has already launched its ambitious e-commerce site JioMart, which is in contest with American giants Walmart-owned Flipkart and Amazon in India.
JioMart is operational in Navi Mumbai, Thane, and Kalyan. The company is expected to steadily expand the reach of e-commerce in wider regions across India in coming days.
JioMart will partner local grocers and equip them with points of sale (PoS) terminals, low interest working capital, inventory management skills, and GST compliance.
‘India ki nayi dukaan’ services are available on the website, which offers free home delivery, pre-registration discounts and options to buy more than 50,000 grocery products online.
The company has also announced the launch of new format grocery stores – SMART Point, which are purported to complement the JioMart initiative.
The Smart Point stores are a smaller version of larger Smart stores, with the same promise of ‘minimum 7 per cent off on MRP’ on all products.
In addition to assisting the JioMart venture, these stores will also function as a full-fledged grocery outlet, which will further deepen Reliance Retail network. The company also is working on a kirana-driven delivery model for grocery under its new commerce strategy.