Food-delivery platform Swiggy and online grocer BigBasket have planned to take their next big step in business: milk-delivery startups that can enrich their frequency of orders and make customers stick.
With affluent funds in its pocket, Swiggy is planning to acquire subscription-based milk-delivery startup Supr Daily. According to sources, the company is in initial talks with Supr Daily representatives.
Alibaba-backed BigBasket has held acquisition talks with Pune-based RainCan, Gurgaon-based Milk Basket and Bengaluru-based Daily Ninja, said other people aware of the discussions. None of these talks are near finalization.
The milk-delivery startups can help Swiggy and BigBasket significantly increase the frequency of orders to 15-20 times. This is why both platforms are trying acquire startups that handle milk delivery.
Indian households buy milk almost daily, each spending more than ₹ 1,000 a month on average. And since margins earned on milk are low, online milk-delivery startups are adding other grocery products to their platforms. So partnering with companies like Swiggy and BigBasket would be an effective strategy for them too.