Walmart, one of the biggest retail giants in the USA has given a statement confirming its next move in Indian market. Walmart, jointly with its previously acquired one of the biggest e-commerce companies – Flipkart, has decided to invest in another Indian startup, Ninjacart.
According to a report released on Wednesday, Dec 11, both companies on this strategic move will be jointly investing in Ninjacart. The funding is expected to start coming in within 3 weeks from now and transition is supposed to be closed by the end of the year. Though the actual numbers have not been officially announced yet, A whopping amount of $50 million is being speculated.
Ninjacart is a Bengaluru based business to business supply chain company that is driven by cutting edge technology. The company is considered the largest fresh produce supply chain in India. They connect farmers to retailers, service providers and restaurants via internet and mobile application.
The company works with over 20,000 local farmers that are based in over 150 villages throughout the country. Over 1400 tons of fresh produce is transported every day to be delivered over 60,000 grocery stores and restaurants. The company is currently operating in 7 major cities – Bangalore, Hyderabad, Chennei, Delhi, Ahmedabad, Pune & Mumbai.
According to a statement, the aim of the 3 partners will be to ensure better access to high quality fresh produce for consumers and retailers while parallelly creating opportunities for farmers across the nation. The investment will also help Ninjacart to grow its branches covering even more cities in India, expand its customer base and gain global exposure to improve its operational efficiency and help fresh produce ecosystem.
Ninjacart was founded by Thirukumaran Nagarajan, Kartheeswaran K. K, Vasudevan Chinnathambi, Sharath Loganathan and Ashutosh Vikram, in 2015. It has come a long way since, it is said to have caused an increase of approximately 15% in the income of connected farmers as well as reducing food wastage to less than 1% from nearly 35% that happens during a traditional supply chain process.
Mr. Kalyan Krishnamurthy, Group CEO of Flipkart said, In Ninjacart, we see a company that shares our values, our pioneering mindset and our commitment to tech driven innovation that improves life in India. Flipcart have been developing during the past year by focusing on creating the right infrastructure, supporting food producers, processors & local farmers and building a sustainable ecosystem while bringing quality, value and convenience to consumers and creating thousands of jobs, he added.
Walmart is committed to supporting farmers in India and direct from farm oriented operating system of Ninjacart is well in line with the motto of Walmart of sourcing 25% of the produce in their best price cash and carry stores directly from farmers by 2023, President and CEO of Walmart India, Krish Iyer said.
Previously, Ninjacart has raised funds from companies like, Accel partners, Steadview Capital, Syngenta Ventures, Qualcomm Ventures and an another USA based investment giant Tiger global. Infosys co-founder Nandan Nilekani has also invested in the Agri-tech company.