Bigbasket acquires Bengaluru-based milk delivery app

Bigbasket, an online grocery delivery start-up, acquired 100 per cent stake in Bengaluru-based milk delivery app DailyNinja.

Around US$ 15-20 million has been paid for the acquisition by the online grocery platform, a person aware of the deal said, requesting anonymity.

Bigbasket will be able to hold its leadership position with the help of this deal, especially in the subscription delivery space in Bengaluru.

BB Daily, which is company’s milk delivery service, will expand its daily business by 150 per cent-200 per cent over the next 12 months. Currently, DailyNinja has around 110,000 customers transacting daily which will now help BB Daily strengthen its user base.

BB Daily makes about 160,000 deliveries per day including a wide range of fresh fruits and vegetables, bread, dairy & eggs and a vast collection of daily essentials like breakfast cereals, tender coconut, personal care and baby care products etc.

The company will also gain access to DailyNinja’s network of 2000 milkman partners spread across India. DailyNinja will be able to double its business within a month by utilising BB’s supply chain capabilities through the acquisition. DailyNinja’s customers will be able to access BB Daily’s extensive non-milk range.

Mr Hari Menon, Co-Founder, and CEO, Bigbasket, said that business with small traders are a key and growing part of Bigbasket's strategy.

“DailyNinja currently has a large network of milkman partners which will enable us to expand our offerings under BB Daily. Our relationship with the key national brands as well as the supply chain built over the years will help us deliver strong value proposition to them. We also aim to improve delivery productivity and achieve break-even much sooner than planned," Mr Menon said.

“We are pleased to be a part of Bigbasket, this is a great outcome for all of our team members, shareholders and us founders. When we started DailyNinja 5 years ago, Bigbasket was the company we were hoping to emulate, and we are excited to be part of the BB Family now," added Mr Sagar Yarnalkar, co-founder, DailyNinja.

Since the launch of BB Daily in December 2018, Bigbasket has been focusing on increasing its subscription business to serve the recurring consumption needs of its customers at low delivery costs. Presently, Bigbasket users pay Rs 40 (US$ 0.57) and above for delivery charges, which is forgone when a user opts for a subscription package.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.