Milkbasket bets on private labels, expects 40 pc revenue contribution by year-end
The company has been "experimenting" with private labels and has seen a good response to these products, Milkbasket co-founder and CEO Anant Goel told .
"We have been experimenting with private labels for a year across categories like eggs, pulses, whole spices and dry fruits. We are now looking at creating five separate brand lines for dairy, bakeries, food, non-food and fresh produce," he said.
Goel added that sourcing of these items is under works, and brand name and other details will be formalised in the first half of the year.
"Private labels are already contributing 20-22 per cent of revenues and we expect to double this, get to about 40 per cent by the end of the year," he said.
Goel said the company has achieved an overall gross margin of 20 per cent for the business.
"While the margin is higher in Gurugram, it is lower in cities like Hyderabad where we have just started. We expect this to improve and the overall numbers could be around 25 per cent by the end of the year," he added.
By December 2020, the company expects its average revenue run rate to be upwards of USD 100 million (about Rs 710 crore).
Milkbasket operates in cities like Gurugram, Ghaziabad, Noida, Delhi, Hyderabad and Bengaluru.The company has raised close to USD 26 million in equity funding from Mayfield India, Beenext, Kalaari Capital, Unilever Ventures, Blume Ventures, Lenovo Capital (LCIG), few family offices, and USD 2.2 million in venture debt funding from Innoven Capital. SR RSNRVK
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
- Sustainable Tourism Practices
- Byju's shareholders vote to remove CEO, family; company calls vote invalid
- Engaging with competent authorities, use only genuine cheese, says McDonald's
- Apple's India revenue up 42% to $8.7 bn in 2023: Morgan Stanley
- Reserve Bank asks NPCI to help continue operations of Paytm app