Milkbasket Approaches Amazon For Acquisition

Milkbasket which is an online milk delivery startup is in talks with Amazon India for a potential acquisition, said a person familiar with the deal. After the Gurugram-based firm’s acquisition talks with BigBasket did not materialize due to difference of opinion related to valuation. If the said deal of the company with Amazon India materializes positively, it will most likely be an all-stock deal. One of the people familiar with the deal requesting anonymity said, “Milkbasket has been in the market for six months to raise money or get acquired,” He further added, “Even though they recently saw a spike in their order numbers, it is unclear in which direction this will go.”

Talks of Milkbasket with Amazon India in the past on the same subject had fizzled out without any outcome, but the company wants to give another try. However, this time around, the talks are aligned with a recent spike of interest by Indian customers to purchase groceries online. The talks are at a very nascent stage as of now and it is not sure to materialize into a deal. “This time Amazon sees more value in the company because of the Covid-19 crisis. The spread of the virus has triggered a demand for grocery and essentials with an emphasis on no-contact delivery,” said one of the sources, requesting anonymity. 

An Amazon India spokesperson has reportedly said, “We do not comment on what we may or may not do.” The news has poured in soon after Amazon decided to shut down Amazon Prime, which is their two-hour instant grocery delivery service. Amazon Fresh is expected to replace Amazon Prime.

Milkbasket has also been in some early talks with some of the brick and mortar retailers for possible synergies, besides Amazon, However, as per the sources, these talks are still at early stages. “For now, there are no talks between BigBasket and Milkbasket. BigBasket was offering a deal similar to the one they gave to Daily Ninja while Milkbasket was looking for a much better valuation,” added one of the sources mentioned above. Milkbasket raised a bridge round of over Rs 20-25 crore, about a month ago with an aim to break even.