Grocery delivery firm Milkbasket acquires Bengaluru-based PSR Supply Chain

Daily grocery delivery firm Milkbasket Tuesday said it has acquired Bengaluru-based PSR Supply Chain.

The company, however, did not disclose the deal amount.

Set up in 2015 by Nagarjuna Reddy Chagamreddy and Sai Abhishek Velukuru, PSR Supply Chain is a local e-grocery store, and Milkbasket has integrated the startup's customers and offering into its portfolio, Milkbasket said in a statement.

PSR Supply Chain has ceased operations as of June. In four years of operations, the company established a network of over 4,000 registered customers and its last reported annual turnover was over Rs 2.5 crore.

"The acquisition of PSR Supply Chain helps us in further strengthening our customer base and offerings in Bangalore. While we are growing phenomenally on our own, we are always on the lookout for strategic acquisitions to help us shorten our learnings in specific regions or technologies," Milkbasket co-founder and CEO Anant Goel said.

Earlier this year, Milkbasket had acquired Noida-based Veggie India.

Unilever Ventures-backed Milkbasket had launched operations in early 2015. It has till date raised close to USD 26 million (approx Rs 180 crore) in equity funding and counts Mayfield Advisors, Beenext, Kalaari Capital, Lenovo Capital and Blume Ventures among its investors.

Milkbasket to fund Rs 10 cr to scale up biz as it aims 10 scouring centres

Grocery delivery startup Milkbasket on Tuesday said it will invest Rs 10 crore to scale up its fresh fruits and vegetable category as it aims to set up to 10 more fresh scouring centres across the country.

"The company aims to set up to 10 more collection centres in villages to promote right farming practices for better quality yield, maintain the cold chain to mitigate the food wastage and preserve the nutritional value of produce," it said in a statement.

Also, direct farm sourcing coupled with direct sales to consumers results in cost effectiveness and no margin leakage to middlemen or other business to business players, the company added.

"Following the success of Bakhtawarpur centre in Delhi which receives fresh produce from over 20 villages around the city, Milkbasket has shortlisted villages in Bangalore, Hyderabad, Nasik, Haryana, Himachal Pradesh and Uttar Pradesh for the next wave."

Milkbasket co-founder and CEO Anant Goel said the company will continue to invest significantly to establish a robust processing and distribution network over the next year.

Additionally, the company has tied up with multiple farmers producers organisations (FPOs) across the country to source directly from states like Bihar, Himachal Pradesh, Uttar Pradesh and Gujarat.

Milkbasket said it also aims to get into the contract farming as the company believes contract farming done right can be very beneficial for both the stakeholders.

"The company is in talks with various agronomists and farming experts to help farmers develop sustainable agricultural systems by technical knowledge transfer.

"As a first step, Milkbasket has partnered with multiple hydroponic farms to ensure 100 per cent pesticide-free produce for its customers," the company added.

Currently, fresh fruits and vegetable category contributes over 25 per cent Milkbasket's sales and the company aims grow this category by at least 1.5 times over the next 12 months, Anant added.

Earlier this month, Milkbasket raised an additional USD 10.5 million in its latest round of funding led by Unilever Ventures, with participation from Mayfield India, Kalaari Capital, and Blume Ventures and few Indian family offices.

Launched in early 2015, Milkbasket has till date raised close to USD 26 million (approx Rs 180 crore) in equity funding from Mayfield Advisors, Beenext, Kalaari Capital, Unilever Ventures, Lenovo Capital, Blume Ventures and few family offices.

Milkbasket raises $10.5 mn from Unilever Ventures, Kalaari Capital, others

"While the industry is witnessing a number of players adopting our model, this funding - our largest fund infusion till date - is a testament to our robust execution, the team and continued trust of our investors in the growth of Milkbasket," Milkbasket Co-founder and CEO Anant Goel said in a statement.

Milkbasket said more than 70 per cent of its revenue comes from non-milk products, from the wide assortment of over 8,500 stock keeping units, and it has launched its services in four cities across India within the last six-seven months.

"We are steadily and surely moving towards our goal of achieving $1 billion annual recurring revenue in 2021. Together with investing in talent and geographic expansion, Milkbasket continues to invest in customer centric innovation, and this funding will help us focus on all the three areas to build a national market leader in online grocery," Goel added.

Launched in early 2015, Milkbasket has till date raised close to $26 million (approx Rs 180 crore) in equity funding from Mayfield Advisors, Beenext, Kalaari Capital, Unilever Ventures, Lenovo Capital (LCIH), Blume Ventures and few family offices.