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Milkbasket eyes break even in Jul-Sept quarter on rising e-commerce demand

Milkbasket is present in four cities so far including Gurugram, Noida, Bengaluru and Hyderabad. Goel said, the company had achieved break-even in three cities and Hyderabad would join the list soon

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Coronavirus | Milkbasket | Lockdown

Sai Ishwar  |  Mumbai 

Grocery shopping
Milkbasket has also witnessed a 2.2 to 2.5 times increase in its average order value across its 130,000 active user base while it has been onboarding 500-1,000 new signups on a daily basis since the lockdown

Online home essentials and grocery delivery start-up is expecting to break-even in the July-September quarter (Q2), as the adoption of e-commerce in the country sees a huge boost, triggered by the coronavirus-induced

“We are very much on track to achieve overall profitability (by September-end) while we had turned operationally profitable in April,” said Anant Goel, co-founder and chief executive officer (CEO) of the Gurugram-based firm. “In December, when we started focusing on profitability, only had turned profitable by then. Our focus was to make one city profitable in every quarter.”

is present in four cities — Gurugram, Noida, and Goel said the company had achieved break-even in three cities and will join that list soon.

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“We will probably be the first player in the online grocery space to achieve profitability in India. No other company has been able to do that because of the perception that break-even can’t be achieved in smaller scale,” he said.

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 This comes as Covid-19 has given a fillip to 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.

Earlier this week, the company announced raising $5.5 million in Series-B funding, led by Inflection Point Ventures. The funding will be used for hiring more people and upgrading technology, the company said. According to data compiled by Crunchbase, the start-up has raised $38.8 million to date.

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Milkbasket, however, said it was still facing manpower shortage problems and employee costs have been inching higher because of the prolonged supply issue. Training of fresh talent and former gig-workers laid off by hyperlocal start-ups has been taking time, Goel said. He also downplayed the reports that suggested Milkbasket being the acquisition target for Amazon, and Paytm Mall.

First Published: Sat, June 27 2020. 16:57 IST
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