Swiggy and BigBasket have identified milk supply sector as their investment for the future, reported The Economic Times.

The food-delivery platform and the online grocer are viewing milk delivery startups as a tool to create a presence in the milk supply segment, ET reported on Wednesday.

According to the report, Swiggy, which is looking to expand into the grocery segment is in early talks to acquire subscription-based milk-delivery startup Supr Daily. On the other hand, the report added that the Alibaba backed BigBasket held buyout talks with Pune-based RainCan, Gurgaon-based Milk Basket and Bengaluru-based Daily Ninja.

“Given the kind of capital these companies have raised, they need to invest significantly in capacity-creation and customer acquisition, and subscription-based companies could give them a loyal base of customers … so, wherever Swiggy and BigBasket can leapfrog their growth, they will try and do so through an acquisition,” Vinod Murali of Alteria Capital was quoted as saying in the report.

With an average Indian household spending over a thousand rupees every month on milk, the new venture could help Swiggy and BigBasket in increasing their frequency of orders to 15-20 times a month from 4-5 times a month, the report said.

First Published:May 30, 2018 12:49 PM IST