Grocery delivery platform Milkbasket will expedite its proposed initial public offering (IPO) to the second half of next calendar year.
Grocery delivery platform Milkbasket will expedite its proposed initial public offering (IPO) to the second half of next calendar year. The strong adoption of home delivery of grocery items has provided an impetus to target an IPO in just a year, news agency PTI quoted Milkbasket co-founder and CEO Anant Goel as saying. E-commerce platforms have witnessed renewed demand amidst the pandemic as people preferred ordering items from the comfort of their homes. Milkbasket, found in 2015, offers customers a variety of grocery products. It had initially planned to launch an IPO in 2023.
The CEO of Milk Basket said that there is rapid adoption of at-home grocery delivery. “We are now working on the process for an IPO… The process takes time and we are still in early stages, but we are looking at possibly next year’s second half. For now, the thought process is to list in India, we are an Indian company and well recognised in India,” Anant Goel said. The grocery delivery platform already offers over 9,000 products across fast-moving consumer goods including, dairy, fruits and vegetables categories in Delhi, Noida, Gurugram, Ghaziabad, and Bengaluru. Milkbasket currently has an average revenue run rate of about $100 million.
Milkbasket, an EBITA positive company already. “We are approximately Rs 700 crore-turnover company and we are growing, we should be Rs 1,000 crore in the next couple of quarters,” Goel added. Inflection Point Ventures, Mayfield India, Beenext, Kalaari Capital, Unilever Ventures, Blume Ventures, and Lenovo Capital are some of the investors of Milkbasket which have helped the company raise a total of $33 million in equity funding. Milkbasket faces competition from SoftBank backed Grofers and Alibaba backed Big Basket. However, with the entry of Amazon into the grocery delivery space and the announced entry of Mukesh Ambani’s Reliance Retail the space will soon witness intense competition.
“There has always been competition and that is good. Customers have choice and they can decide whether it is the cheapest item, the best quality, a wide assortment of products or guaranteed delivery (that they want). Entry of JioMart will further expand the market and offer more choice for customers,” Anant Goel said. He further refuted the rumours about Milkbasket being acquired by Reliance or Paytm. “These are reports that I also keep reading. We are not looking at getting acquired. Like any other start-up, we are open to investments, but we aren’t selling off the business,” he added.