Milkbasket in talks with Amazon for potential acquisition
Milkbasket has been in acquisition talks with BigBasket, Swiggy, Amazon India and a few others. A news comes on Milkbasket is now in talks with Amazon for a potential acquisition. The development comes barely weeks after BigBasket acquired DailyNinja.
Online milk delivery startup Milkbasket is in talks with Amazon India for a potential acquisition . This comes as the Gurugram-based firm’s acquisition talks with BigBasket did not go through due to differences in valuation, added the two people cited above.
This also comes just days after reports surfaced on Amazon shutting down its 2-hour instant grocery delivery service Amazon Prime Now. It is expected to be replaced with Amazon Fresh.
Around a month ago, Milkbasket raised a bridge round of over Rs 20-25 crore with an aim to break even. The ongoing consolidation has set in as online milk delivery players have been unable to create a sustainable revenue model. The wafer thin margin coupled with capital intensive investment has proved to be major impendence for the online delivery companies. As a result, they have been left with no option but to look for fundraising or sale out to a bigger player.
Milkbasket itself has been trying to raise fresh funds or getting acquired during the last 6 months, sources privy to the matter claimed. The company reportedly did manage to raise a bridge fund almost a month ago but evidently the latest capital infusion is proving to be insufficient. Its struggle to keep up the business was all too evident when it recently decided to scale down the operations in Bengaluru and Delhi NCR.
Even if the ongoing Milkbasket- Amazon talks does materialize into a deal, Milkbasket’s investors and promoters are unlikely to rake major profit from the deal.
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