MilkBasket, an online milk supply company, seems to have found a home. Reliance is all set to acquire the subscription trade company, said three individuals informed of the transaction information.
For the past six-eight months, the Gurugram-based business that delivers groceries, milk, and other daily necessities have been searching for an acquisition.
The negotiations have entered the last stage and the contours of the agreement have been decided by both sides. “A term sheet was already offered by Reliance earlier in the month and the transaction could be published shortly,” said one of the confidentiality requestors.
This is the second round of the two firms’ negotiations. “Reliance and MilkBasket are close to signing the contract, as opposed to the previous speech that did not materialize. The value of the transaction is in the range of $40-43 million,” said the second person who also preferred not to be identified.
Last month, when Kalaari Capital transferred its share to Mahendra Nahata-led MN Televentures, the initial discussions of the second round of negotiation came to light. The transactions were resisted by the co-founders and other stakeholders, according to an ET study, as Nahata allegedly has strong relations with Reliance.
MilkBasket has generated $33 million in overall risk funding, from several family offices, including Inflection Point Ventures, Mayfield India, Unilever, Beenext, Blume Ventures, Kalaari, Lenovo Capital, and a host of angels. The organization has already been in negotiations with Amazon and BigBasket in the past to buy.
Established in 2015, MilkBasket was praised as a local innovation because of its everyday essentials delivery model. Unlike many other e-commerce sites, it has a sticky user base (household) that buys almost every day. Experts claim, though, that MilkBasket was a relative newcomer in the e-grocery room and that heavyweights such as SoftBank, Tiger Global, Alibaba, and Mirae had taken their stakes by then.
As a consequence, there was hardly any thirst to spend on new models in the grocery store.
With all of this probable acquisition, there would be an end to independent plays in the grocery subscription trade space. Reliance is likely to leverage the Goel-led company to ramp up its commercial subscription platform, which has been in pilot mode since last year.