Online grocery delivery startup Bigbasket on Monday said that it has acquired 100% stake in Bengaluru-based milk delivery app DailyNinja.
The online grocery platform has paid around $15-20 million for the acquisition, a person aware of the deal said, requesting anonymity.
The acquisition will allow Bigbasket to consolidate its leadership position, especially in the subscription delivery space in Bengaluru.
It will also help Bigbasket’s milk delivery service -- BB Daily -- grow its daily business by 150%-200% over the next 12 months. DailyNinja currently has around 110,000 customers transacting daily which will now help BB Daily augment its user base.
Currently, 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.
BB Daily will also have access to DailyNinja’s network of 2000 milkman partners spread across India. The merger with Bigbasket will be an opportunity for DailyNinja to double its business within a month by leveraging BB’s supply chain capabilities. DailyNinja’s customers will be able to access BB Daily’s extensive non-milk range.
Speaking about the acquisition, 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," 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 Sagar Yarnalkar, co-founder, DailyNinja.
Bigbasket has been focusing on growing its subscription business to serve the recurring consumption needs of its customers at low delivery costs ever since the launch of BB Daily in December 2018. Currently, Bigbasket users pay ₹40 and above for delivery charges, which is forgone when a user opts for a subscription package.