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Milkbasket bets on new service to strengthen bottomline, eyes profits in FY21

PTI   

Milkbasket bets on new service to strengthen bottomline, eyes profits in FY21
Business1 min read
New Delhi, Dec 3 () Daily grocery delivery platform Milkbasket on Tuesday said it has launched in-hand delivery service for fresh meats, which is expected to contribute 10-15 per cent of the company's bottomline as it aims to hit profits in FY21.

Milkbasket, which already offers delivery of over 9,000 products across FMCG, dairy, fruits and vegetables categories, currently has an average revenue run rate (ARR) of about USD 50 million.

"This is Milkbasket's first attended delivery service, given that all existing daily deliveries (over 75,000) are contactless. We have just started the service in Gurugram and are already receiving over 1,000 orders a day," Milkbasket CEO and co-founder Anant Goel said.

The company will soon launch in-hand delivery of fresh meats in other cities with its own private label, he added.

The service has been launched with a delivery charge rate of Rs 9 per delivery.

Goel said the service offers a high margin and "will contribute 10-15 per cent of the company's bottomline".

"The launch is part of our efforts to focus on profitability and given that this is a high margin category, we expect this to contribute 10-15 per cent to the bottomline... Dependent on various factors, we should hit profitability in FY21," he said.

Goel added that less than 25 per cent of its sales comes from milk, and fruits and vegetables are the second-largest category by sales.

Milkbasket currently operates in Gurugram, Ghaziabad, Noida, Delhi, and Bengaluru. It has raised close to USD 26 million in equity funding from Mayfield India, Beenext, Kalaari Capital, Unilever Ventures, Blume Ventures, Lenovo Capital (LCIG), few family offices, and USD 2.2 million in venture debt funding by Innoven Capital. SR BAL

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