Milktech and micro-delivery major Milkbasket has scored yet another $7 million round, this time, led by US-based venture capital Mayfield Fund.
This is a part of extended Series A round that started in May with Kalaari Capital leading a $7 million round along with other existing investors such as Beenext Ventures, Blume Ventures, and Unilever Ventures.
Last month, the company had picked up Rs 10 crore ($1.37 million) from Mayfield, making this round worth about $15 million so far.
As per an interview of CEO and co-founder Anant Goel with ET, these funds are expected to be deployed into developing technology and preparing for the next growth phase.
The next growth phase, according to sources, is Milkbasket’s expansion out of its home den Gurugram into Bengaluru.
With DailyNinja already leading the Bengaluru market, and BBdaily (the product of BigBasket’s RainCan and Morning Cart acquisition) posing as the formidably funded rival, Bengaluru has become the hub of competition in microdelivery segment.
Simultaneously, expanding out of one’s home city and entering into other major cities seems to have become a trend in the milk and daily essentials delivery segment.
DailyNinja had earlier started operations in Hyderabad with the acquisition of 4amshop, and later had scooped up $5 million and ventured into Pune and Mumbai. SuprDaily is leading the microdelivery race in Maharashtra’s capital and has been acquired by Swiggy.
As can be deciphered, with the multiple consolidations and expansions, the competition in the microdelivery, albeit limited to top metros, is intensifying at a fast pace.
It would be interesting to see how these funds help Milkbasket fare the market when it is yet to cover a major part of Gurugram.