May 30: Food-delivery platform Swiggy and online grocer Big-Basket are taking the next big leap to swell their order frequencies. The duo are currently looking to exploit the segment of milk-delivery startups to shore up the orders through their online platforms.
While Swiggy is said to be having talks with Supr Daily for a possible acquisition, BigBasket is reportedly having acquisition talks with Pune-based RainCan, Gurgaon-based Milk Basket and Bengaluru-based Daily Ninja. According to people close to the matter, talks are yet to reach its final stages.
Analysts opine that stepping into milk-delivery segment through acquisitions could help Swiggy and BigBasket shoot up the frequencies of monthly order through their platforms. With the current frequency count standing at 4-5 times a month, the acquisition of milk-delivery startups could help the players increase the count to as high as 15-20 times per month.
Both the companies are flushed with funds are looking for the right investment for customer acquisition. Swiggy had recently secured $100 million via funding that was led by South Africa’s Naspers and Chinese delivery firm Meituan-Dianping. The company is also pursuing a $200 million funding from Russia’s DST Global and US-based hedge fund Coatue Management. At the same time, Big-Basket, which is backed by Alibaba, had received a $200 million funding earlier this year.
With the acquisition of subscription-based startups, both the companies will be eyeing to glue a loyal base of customers to its platforms. Online milk-delivery startups too are on the lookout for adding other grocery products due to low margin of earnings on milk-delivery.
As per industry estimates, Big-Basket handles over 60,000 daily orders on an average, while Swiggy manages over 300,000 food-delivery orders per day across the country. Both would have a significant increase if coming out successful with the acquisitions, which seems crucial at a point when Amazon and Flipkart are readying up to become aggressive in the online food and grocery space.