12,106.90-62.95
Stock Analysis, IPO, Mutual Funds, Bonds & More

Doodhwala comes via FreshToHome

Shan Kadavil, the chief executive of FreshToHome, said his company had not acquired Doodhwala and had instead provided a migration path for its customers.

ET Bureau|
Oct 15, 2019, 08.20 AM IST
0Comments
Getty Images
GettyImages-960012716
“Dear customer, we regret to inform you that we will be discontinuing services due to unforeseen circumstances,” an email sent to customers by Doodhwala said.
Bengaluru: Doodhwala has halted operations and is redirecting customers to FreshToHome, in a sign of increasing consolidation among companies providing subscription based grocery and milk delivery.

FreshToHome has paid an estimated Rs3-4 crore to acquire the Bengaluru-based startup’s customer base, three people aware of the deal told ET. Doodhwala plans to use the proceeds to pay off creditors, they said.

Shan Kadavil, the chief executive of FreshToHome, said his company had not acquired Doodhwala and had instead provided a migration path for its customers. FreshToHome sells fresh vegetables, fish and meat. Given the absence of abundant capital that larger players like BigBasket and Swiggy hold, micro-delivery businesses are hard to run independently given the poor unit economics, complex supply chain and longer gestation period to profitability, investors say.

They expect further consolidation in the milk subscription-based segment where the players include DailyNinja, BB Daily and Milkbasket.

“Dear customer, we regret to inform you that we will be discontinuing services due to unforeseen circumstances,” an email sent to customers by Doodhwala said.

“You can easily transfer your active subscriptions and wallet balance to the FTH Daily App,” it said.

Also Read

These doodhwalas aim at a new ‘white revolution’

Doodhwala receives seed investment of $ 2.2 million by Omnivore

BJP, Congress MLAs spat over 'doodhwala-chaiwala' remarks in assembly

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service