Swiggy, BigBasket to acquire milk-delivery start-ups

Swiggy and BigBasket which recently received funding are now eyeing milk delivery startups for acquisitions.

According to media reports, both companies are in talks with some of the milk delivery startups in different cities to either work together or to simply take over their existing business. RainCan operating in Pune, Milk Basket of Gurugram and Bengaluru-based Daily Ninja are some of the names being suggested. These companies have a subscription-based model where they deliver milk to the doorsteps of their customers, a more sophisticated job of the good-old milkman.

It might be a win-win situation for both sides since these milk suppliers can add groceries to their offerings and companies like BigBasket can quickly add a big chunk of households to be recruited directly for their grocery supplies. Experts do feel this model can work well in quickly expanding the base for them.

For Swiggy, this would be a diversification from its core business, but may ultimately converge with the customer base it has already created. BigBasket too wants to enter this business.

Both Swiggy and BigBasket, which recently have received funding are now eyeing milk delivery startups for acquisitions.

Recently, BigBasket raised $300 million in a Series E funding round led by Alibaba in February 2018, while in the same month, Swiggy too, raised Series F funding of $100 million led by Meituan-Dianping.