Gurugram-based hyperlocal milk delivery startup Milkbasket has raised additional funding of ₹49 crores ($7 million) from US-based venture capital firm Mayfield Advisors. Earlier the startup raised ₹49 crores ($7 million) in series A funding. Milkbasket counts BeeNext, Kalaari Capital, Blume Ventures and Unilever Ventures as its investors.
The startup will use the funds to expand its operations to multiple cities in India, invest in its technology, and build a good team. The new infusion has boosted Milkbasket’s total series A funding to ₹98 crores ($14 million). Earlier in January this year, the startup raised ₹21 crores ($3 million) in pre-series A funding from Unilever Ventures, Blume Ventures and Lenovo Capital.
Founded by INSEAD alumnus Anant Goel along with Anurag Jain, Yatish Talavdia and Ashish Goel in 2015, Milkbasket caters to the unique Indian habit of getting fresh milk to their doorstep every morning. The local delivery startup has now expanded to delivering groceries as well.
Anant Goel, co-founder and CEO of Milkbasket said, “The idea was to eliminate the hassles associated with traditional offline and even online grocery shopping. We have delivered over 5 million orders till date and have created a positive impact on over 50,000 families. The funding will accelerate our goal of making Milkbasket synonymous with grocery delivery, nationally. The funds will also enable us to invest adequately in developing technology and hiring for the next growth phase.”
The startup operates with a full-stack in-house supply chain model and is trying to target country’s grocery retail market which is pegged at over $400 billion and is growing at a rate of 15 per cent every year. Within six months of its inception, Milkbasket achieved positive unit economics.
Speaking of the investment, Nikhil Khattau, MD, Mayfield India, said in a press statement: “Regarded as the future of the industry, the company’s pioneering model has reinvented everyday lives of its customers. Grocery delivery industry in India is a specialist play, and Milkbasket’s demonstrated expertise and acceptability make us confident about the company’s exceptional growth potential.”
There are two major players in this segment namely BigBasket and Grofers. Other players competing with Milkbasket are DailyNinja and Doodhwala. Milkbasket currently operates in Noida, Gurugram, and Ghaziabad.
Billion-dollar e-commerce giants like Amazon has entered into the grocery segment. Earlier in August this year, Flipkart launched its online grocery store called Flipkart Supermart. Amazon and Flipkart are aggressively looking to foray into the segment.