Milk and grocery delivery startup Milkbasket on Thursday announced turning profitable in Gurugram where it has the largest customer base and gets around 50 per cent of its monthly revenue. The startup delivers daily need items such as milk, bread, eggs etc across NCR along with Hyderabad and Bengaluru. Milkbasket competes with Swiggy’s Supr Daily service, DailyNinja, and BigBasket while Bengaluru-based Doodhwala had closed operations last year. The company was launched in early 2015.
“Milkbasket’s contrarian model has been a mystery to many with individuals going to the limit of discrediting our unit economics and how they will behave at scale! This puts an end to it all. We are profitable in Gurgaon and other cities shall follow soon!,” said Anant Goel, Co-founder and CEO, Milkbasket in a statement adding that the company aims to get overall profitable in 2020.
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Milkbasket has so far raised $33.2 billion from a clutch of investors including Blume Ventures, Kalaari Capital, Singapore-based Beenext, Mayfield Fund etc, as per deals tracker Crunchbase. The company claimed to deliver around 75,000 groceries to more than 150k households daily in Gurgaon, Noida, Delhi and Bangalore daily. It has a fulfilment rate of 99.6 per cent and earns Rs 1 crore in daily revenue, the company said.
The company has more than 9,000 products across household grocery, dairy, fruits and vegetable categories while milk is its top offering having less than 25 per cent share in total sales. The FMCG category contributes around 35 per cent while fruits and vegetables have around 20 per cent share in sales. Milk delivery’s addressable market size is $1.2 billion in India out of which 8 per cent is online, RedSeer had said in May 2018 report. Milkbasket was founded by Anant Goel, Ashish Goel, Anurag Jain and Yatish Talvadia and aims to deliver groceries to over a million households by 2021 even as it claims of getting positive unit economics within the first six months of its launch.
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Source: Financial Express