INDIA – DailyNinja, Bengaluru-based hyperlocal subscription delivery startup has acquired milk delivery startup business 4amShop in an undisclosed cash deal as it seeks to expand its presence in Southern India.

On completion of the transaction, the founders of 4amShop will exit and 2,000 customers of 4amShop will be transferred to DailyNinja, according to inc42.

The ‘doorstep’ delivery service is not only seeking to take 4amShop’s stead in Hyderabad but also plans to expand into Gurugram, southwest of New Delhi in northern India.

“This acquisition seemed like a faster way for us to grow our user base in Hyderabad since the company follows a similar business model,” said Sagar Yarnalkar, chief executive of DailyNinja to ET Retail.

“As part of this deal, the founders of 4amShop will exit and their 2,000 customers will be transferred to our platform.”

4amShop and DailyNinja complements each other in their portfolio as they all use a network of milk vendors to deliver milk and other essentials to customers.

4amShop, based in Hyderabad operates in early morning deliveries of household essentials along with milk and groceries while DailyNinja, founded in 2015 by Yarnalkar and Anurag Gupta, provides early morning delivery everyday essentials and delivers Milk and Groceries to households every day across Bengaluru and Hyderabad.

With the acquisition, DailyNinja which serves 30,000 orders daily expects to increase the number to 150,000 in the next one year.

Tapping into milk-delivery business.

Companies are looking to acquire a larger portion in the milk delivery business for instance, Kishore Biyani owned and one of the largest retailers in India, Future Group said it will start delivering milk, eggs and bread through 1,000 outlets under the Easyday, Nilgiris and Heritage brands.

Recently, fast moving consumer goods arm of the group, Future Consumer Ltd formed a 50:50 joint venture with New Zealand dairy giant Fonterra to launch dairy products in India.

Economic Times reported that online grocer Swiggy and food-delivery platform BigBasket have identified milk supply sector as their investment for the future.

They both laid down plans to acquire milk delivery startups as a tool to create a presence in the milk supply segment, something that would be critical in increasing their frequency of orders to 15-20 times a month.