BACQ will no longer be investing the agreed upon ₹20 crore in debt funding in Milkbasket
The inside sources have speculated that friction regarding announcements and processes might be a major reason for this fallout.
Earlier this week Milkbasket received a funding of $10 million (₹73 crore) from existing investor Unilever Ventures as a part of a fresh funding round.
BACQ, which is the personal investment fund of Flipkart’s co-founder Sachin Bansal will no longer be investing the agreed upon ₹20 crore in debt funding in Milkbasket, a micro-delivery start-up. This deal was announced in April 2019 by Milkbasket. However, the companies have decided not to go ahead with it. The decision of scarping the deal is reportedly mutual and the companies have not given an official statement for the same.
However, inside sources have speculated that friction regarding announcements and processes might be a major reason for this fallout. Milkbasket was planning to use the raised debt funds for furthering their research and development efforts and for meeting the expenditure costs of the company.
However, this deal going catapult for Milkbasket isn’t a big issue. Earlier this week the start-up received a funding of $10 million (₹73 crore) from existing investor Unilever Ventures as a part of a fresh funding round. Other investors including Kalaari Capital, Blume Ventures and Mayfield India also participated in the round.
Milkbasket was founded by Anant Goel, Anurag Jain, Yatish Talvadia and Ashish Goel in 2015 with the aim of catering to the demand for milk deliveries in the morning. The orders made on the site before 12 am are delivered before 7 am the next day. The purchase is pre-paid via a mobile wallet available on the app that can be topped up as required. This eliminates the need for checkout or payments. Thus there is no need for payment each time you choose an item on the app. The order is automatically placed.
The company positions itself as small family-controlled business unlike other giants in the market like BigBasket, Grofers and Amazon.
However, despite their focus on milk deliveries and dairy products, 70% of the revenue of Milkbasket comes from non-dairy products. Currently, the company operates in 4 major cities across India and has expanded its reach in the past few months. The start-up also boasts of having positive unit economics and have seen a spectacular growth of 20% each month.
Milkbasket also raised a capital of $7 million (₹484 Cr) in December 2018 in a series A funding round. This round was led by US-based Venture capital company Mayfield. Before this, the company had also raised $7 million from Kalaari Capital in May 2018.
BAC Acquisitions had been set up after 6 months of Bansal exiting the e-commerce giant Flipkart in May 2018. The fund aims to pump capital in a variety of sectors such as healthcare, energy, media,retail, engineering and data sciences. Bansal has made a plethora of investments via his new fund and has emerged one of the most prolific investors in the start-up sector.
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