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Milkbasket How The Idea of Delivering Milk at Your Doorsteps Made Way For The Country'S Third-Largest On-Demand Grocery Start-Up

MilkBasket began as a startup that delivered milk and bread to homes in the morning, and has grown to become India's third largest on-demand grocery delivery service. It pioneered contactless delivery in Delhi, Bengaluru, and Hyderabad. MilkBasket differentiates itself from competitors like BigBasket and Dunzo by stocking private label products which account for 22% of its revenue. The company uses a subscription model to deliver groceries at scheduled times each day in order to lower delivery costs. MilkBasket plans to expand its offerings to include prescription medicine delivery.

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K Bhargava
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635 views

Milkbasket How The Idea of Delivering Milk at Your Doorsteps Made Way For The Country'S Third-Largest On-Demand Grocery Start-Up

MilkBasket began as a startup that delivered milk and bread to homes in the morning, and has grown to become India's third largest on-demand grocery delivery service. It pioneered contactless delivery in Delhi, Bengaluru, and Hyderabad. MilkBasket differentiates itself from competitors like BigBasket and Dunzo by stocking private label products which account for 22% of its revenue. The company uses a subscription model to deliver groceries at scheduled times each day in order to lower delivery costs. MilkBasket plans to expand its offerings to include prescription medicine delivery.

Uploaded by

K Bhargava
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MilkBasket

How the idea of delivering milk at your doorsteps made way for the country’s third-
largest on-demand grocery start-up

Built on the idea of having milk delivered to homes every morning, MilkBasket completes
our morning rituals while we read our newspapers. Enabling easy grocery, MilkBasket is
seen as an online replacement catering hyperlocal grocery delivery. MilkBasket pioneered
contactless delivery? Yes, all their orders are delivered contactless in Delhi, Bengaluru &
Hyderabad.

Journey

MBA graduates Anant Goel, Ashish Goel, Anurag Jain & Yatish Talvadia recognised the
grocery needs of customers. They started listing milk and bread initially when the e-grocery
market was dominated by likes of BigBasket. MilkBasket currently delivers 9K+ SKUs with
a backing of $38.8 M funding from Inflection Point Ventures & Kalaari Capital.

Branding & differentiation

MilkBasket competes with the likes of BigBasket & Dunzo which already have potential
market share and also with local players like UrbanRemedy, DailyNinja to gain market share.
MilkBasket differentiates by stocking private labels and 22% of the revenue comes from
private labels. Market penetration through differentiation has worked in the dairy and fresh
produce categories giving them 20% margin even during this lockdown.

Business Model
A subscription model to deliver groceries without additional charges mimicking the milkman.
The focus is on recurring supplies at certain times every day to lower delivery costs.
Customers add groceries between 7 am & midnight and get them delivered between 5 am to
12 pm and paid through a mobile wallet in the app.

Services

Milk comes foremost in the items delivered hassle-free, allowing users to keep daily expenses
at the check, set vacation time-offs and repeat orders every day. Services like MbBulk and SCO
(Senior Citizens Only) to help people sustain lockdown. MilkBasket is planning to deliver
prescribed medicines, an addition to the available cluster of categories.

Future

Milkbasket has launched in-hand delivery service for fresh meats, which is expected to
contribute 10-15 per cent of the company's bottom line. By December, MilkBasket expects its
average revenue run rate to be upwards of 710 crores i.e. 1.8 times higher.

Our analysis

Food and grocery sales are expected to reach $869 B in 2023 with digital-based services being
important catalysts of growth. Achieving positive unit-economics could be difficult for on-
demand grocery where price points are the differentiators to drive scale & long-term
sustainability. MilkBasket bets in the segment where companies like Pepper Tap, Town Rush
& Local Banya have failed. Let’s see how it turns out in the long run & stay tuned to know
more about FMCG.

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