In a bid to strengthen its e-commerce position, Reliance Industries (RIL) is in talks to acquire online furniture brand Urban Ladder and milk delivery platform Milkbasket, The Times of India reported.
According to the report, the discussion with Urban Ladder has been going on for the last few months and is now at an advanced stage. People close to discussion pegged the deal at around $30 million including further infusion in the business and earn-out for the management team.
Similarly, Milkbasket is inching close to RIL after its discussions with Amazon and Bigbasket failed to fructify. According to the TOI report, the recent capital infusion of $5 million has given the company a new lease of life and is negotiating over the valuation of the company.
The company serves over 130,000 households and fulfills needs of an entire household with 9,000 products across fruits and vegetables, dairy, bakery, and other FMCG categories. It is currently operating in Gurgaon, Noida, Dwarka, Ghaziabad, Hyderabad, and Bengaluru.
Milkbasket has witnessed a 2.2 to 2.5 times increase in average order value across 130,000 active user base while it has been onboarding 500-1,000 new signups on a daily basis since the lockdown. This comes as Covid-19 has given a fillip to e-commerce firms as more consumers have shifted to ordering groceries online. According to Forrester Research, India’s online grocery market could hit $3 billion in sales this year, an increase of 76 per cent over the previous year.
Apart from the two companies, the Mukesh Ambani led conglomerate is also in talks to acquire e-pharmacy startups like Netmeds and lingerie retainer Zivame as it aims to consolidate with Future Retail.
Source: Business Standard