Milkbasket raises additional $7M in funding round led by Mayfield Advisors
New infusion brings Series A total to $14M for hyperlocal milk and grocery delivery startup Milkbasket; funds will be used to expand into newer cities, develop technology, and increase hiring.
Milkbasket, the Gurugram-based hyperlocal milk and daily needs delivery startup, has raised an additional infusion of $7 million to its earlier Series A funding of $7 million. This current funding was led by US-based VC firm Mayfield Advisors, and has boosted Milkbasket's total Series A funding to $14 million. The other investors include BeeNext, Kalaari Capital, Blume Ventures, and Unilever Ventures.
In January, Milkbasket announced pre-Series A funding of $3 million led by Unilever Ventures, Blume Ventures, and Lenovo Capital. The incoming institutional investors have also bought certain shares from Milkbasket’s existing investors. With this new investment, Milkbasket is aiming to acquire a fresh talent pool, continue to invest in technology, and expand in new territories in the country.
Anant Goel, Co-founder and CEO at Milkbasket, said Milkbasket was created in 2015 and conceptualised as one of India's first micro-delivery services for busy households. "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."
Speaking about the fund raise, he said the backing from Mayfield acted as a validation of their model. "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," Anant said.
According to industry estimates, grocery retail constitutes over 60 percent of the country’s total retail market, pegged currently at over $400 billion and growing at a CAGR in excess of 15 percent annually.
Milkbasket operates with a full-stack, in-house supply chain model. It achieved positive unit economics within the first six months of inception and has introduced the industry’s first flexi-ordering till midnight, delivery by 7 am, no minimum order, and free delivery model.
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 makes us confident about the company’s exceptional growth potential.”
Present in Gurugram and Noida, Milkbasket claims to cater to over 600 communities and differentiates itself with a fully integrated in-house supply chain, from sourcing to last-mile delivery - owning the entire customer lifecycle experience.
Supr Daily, Daily Ninja, and MrNeeds are the other players in the micro-delivery space. BigBasket also ventured into the hyperlocal delivery space by acquiring Pune-based hyperlocal delivery startup RainCan and Bengaluru-based MorningCart.
