There is an acquisition war between Reliance Industries Limited(RIL) and Tata group to establish the monopoly. They both want to establish their presence in every major sector. Just after the confirmed deal between Tata and Big Basket, RIL is ready to acquire Milkbasket, a grocery and milk startup.
Current Status of Reliance-MilkBasket Deal
Reliance-Milkbasket deal discussion is going on for the last year. It seems that deal has reached the final stage. Earlier the deal was on hold due to stakeholders’ disagreement. Milkbasket is a Gurugram-based startup.
As per the latest reports, now all stakeholders are agreed to the new terms and conditions. The deal is expected to be signed within few weeks.
As per the report in Entrackr, the discussion has come to the final phase. Reliance and Milkbasket have endorsed the deal. Reliance submitted the deal documents to the Milkbasket. The financial transaction and the deal amount will be revealed soon. As per the internal report, Reliance will pay around $40 million to Milkbasket for a 100% stake.
How Milkbasket is Beneficial to JioMart?
Milkbasket is known for online grocery delivery instantly to nearby areas. It has implemented the online supply chain management system with the help of advanced technology. Milkbasket has a strong network of 130,000 customers. It offers around 9000 brands related to daily household use.
Once the deal is confirmed, it will help JioMart to strengthen its subscription base in the major cities. Reliance is expected to accelerate the slow growth of JioMart with the help of the current acquisitions. BigBasket and Amazon also tried to acquire Milkbasket earlier.
Founded in 2015 by Anant Goel, Ashish Goel, Anurag Jain, and Yatish Talvadia, Milkbasket operates in NCR-Delhi, Hyderabad, and Bengaluru. The company earned a total revenue of Rs 322 crore in FY2020.
RIL is showing a good interest in investment and acquisitions. Currently, Reliance has a partnership with edtech platform Embibe, furniture firm UrbanLadder, online pharma company Netmeds, music app Saavn, and others.