Bengaluru: Just weeks after Milkbasket’s ₹20-crore debt funding deal with Sachin Bansal-led BACQ fell through, the Delhi-based grocery delivery startup today announced that it had raised fresh funds worth ₹15 crore from venture debt firm InnoVen Capital.
In April, Milkbasket issued a press statement, which originally announced a ₹20 crore debt funding deal from Bansal’s BACQ. However, in June, the Delhi-bases startup put out another press statement clarifying that “Milkbasket and (Bansal’s) BACQ have mutually decided not to proceed with the investment that was announced on April 29, 2019."
The ₹15-crore funding from InnoVen is currently Milkbasket's first successful debt funding deal after the BACQ deal collapsed. To date, Milkbasket has raised close to $26 million in equity funding from Mayfield, Beenext, Kalaari Capital, Unilever Ventures, Lenovo Capital (LCIH), Blume Ventures and few family offices.
Milkbasket had last raised $10.5 million in its Series B round this month.
Founded by Anant Goel, Ashish Goel, Anurag Jain and Yatish Talvadia, Milkbasket originally started with a daily milk delivery service. It currently caters to all household grocery needs, including fruits & vegetables, daily needs as well as other FMCG categories. It also claims to deliver groceries to over 100,000 households a day.
In June this month, Milkbasket said it would invest ₹10 crore to scale up its fresh fruits and vegetable category as it aims to launch around 10 fresh sourcing centres across the country. The company currently has tie-ups with multiple farmers producers organisations across the country to source directly from states such as Bihar, Himachal Pradesh, Uttar Pradesh and Gujarat.
“The fresh investment positions us firmly for continued growth, and we will be investing substantially in geographical expansion, new technological advancements and hiring through the year. This is a testament to our proven pioneering model and a solid team that is transforming everyday lives of urban households in India", according to Anant Goel, chief executive of Milkbasket in a statement.
“We have known Anant and the Milkbasket team for some time and have been impressed with their growth, backed by solid execution. The micro-delivery space is a large addressable market, offering real convenience to customers for their daily requirements. The model inherently has high customer stickiness and potential to increase the basket size over time," according to Ashish Sharma, CEO, InnoVen Capital.
Hyperlocal delivery firms in India have witnessed strong interest from both debt and equity investors in the past. Mint reported in March that Sequoia Capital-backed milk and grocery delivery startup DailyNinja was in early talks to raise $18-20 million in fresh capital. Others such as Country Delight recently raised $10 million led by Matrix Partners, while Doodhwala raised $2.2 million in February 2018 from impact investor Omnivore Partners.