The company achieved positive unit economics and introduced flexible ordering till midnight and delivery by 7 am with no minimum order and free delivery model
While giants like Amazon and Walmart-Flipkart in India battle to gain market share in the online grocery space, homegrown startups such as Milkbasket are busy catering to the daily milk and grocery needs of the people.
“As of now we are completely different from Amazon or Walmart-Flipkart and we don’t compete with them. Customers buy and fulfil their grocery needs in two different aspects- stock-up buy and top-up buy. If you think about the online attempts of grocery selling which is done by Amazon, Grofers or Bigbasket all are replicas of hypermarket buying behaviour where you prepare a list and buy,” said Anant Goel.
While describing Milkbasket, Goel said it is a top-up buy startup. “The customer usually buys its daily grocery such as milk, vegetables, fruits from a local ecosystem and we brought that online. Top up buying is 2x to 3x of what the stock-up buying is. The customer is spending Rs 4,000 on stock up buying but in top-up buying on an average they spend Rs 8,000,” he said.
Milkbasket is not discount-driven but offers early morning, contactless doorstep delivery that values the time spent by its delivery boys. He said, “We researched various models on our delivery process. There is delivery assessment adopted by the companies where the delivery boy waits till the customer checks the order but our delivery boys never interact with the customers. They get a notification when the order arrives. This saves time and cost for both for us. It costs us around Rs 5 but generally the assessed delivery cost around Rs 100.”
The company has achieved positive unit economics by introducing flexible ordering till midnight and delivery by 7 am with no minimum order and free delivery.
While talking about the competition and services, he said, “We are competitor of local retailer sellers and we don’t charge for services. We might introduce something like prime. We are exploring different options. We only make money through commissions.”The company raised $7 million Series A funding led by Kalaari Capital.