Recent reports state that Reliance Industries are planning to buy Urban Ladder and Milkbasket. The former is an online furniture brand whereas the latter is a milk delivery platform. Talks with Urban Ladder have been going on since the past few months. Now, they are on the advanced stage. The deal is said to be around $30 million as of now. They are also working on the infusion and the earn-out for the team. Milkbasket has been discussing with BigBasket, Amazon, and Reliance at the same time. Deals with Amazon and BigBasket have failed. As a result, they are advancing towards Reliance Industries. A capital infusion of $5 million is the new lease of life for Milkbasket. Currently, they are negotiating over the valuation. Reliance is taking such steps to strengthen its position in the sector of e-commerce.
They have successfully raised around $20 billion by selling their stakes in Jio. Therefore, now they want to take on other e-commerce giants. They are now debt-free and are currently on a shopping spree to buy websites. Mukesh Ambani, the chief of Reliance Industries is Asia’s richest man at this point. He is also the 6th richest person in the world. They are actively looking to expand. On Tuesday, Reliance acquired a majority stake in Netmeds which is an online pharmacy for Rupees 620 crore.
Amazon has also launched the service to sell drugs online in India. Other than Urban Ladder and Milkbasket, they are looking out for other e-Commerce businesses too. Some of them are Zivame and Pretty Little Thing. Reports suggested that they are also trying to negotiate and close a deal with the retail sector of Future Group. The pandemic showed a spur of waves in online shopping. Competition between Amazon, Flipkart, Jio Mart, and other grocery services has increased.
For online drug sales. organizations need to follow some regulations. But, Netmeds pharmacy and Sequoia capital came out as a threat to the traditional pharmacy stores. RIL is slowly expanding and Ambani wants to set a footprint in the retail business. All this demand for e-commerce has nudged Reliance and now they are moving at a fast pace with retail acquisitions. They want to be among the top competitors in the country. They are acquiring start-ups who are struggling to survive and Jio will soon have their full-fledged E-Commerce platform. It will be interesting to watch how Reliance expands ahead. We will keep you updated regarding this. Until then, stay tuned and stay safe.