US retailing giant Walmart has committed to investing nearly $50 million in fresh fruit and vegetable supply chain startup NinjaCart. The startup would receive the first tranche of $10 Mn in the next three weeks. Walmart will get a board seat in Ninja-Cart as part of the transaction.
Walmart, which has a majority stake in Flipkart and operates cash and carry business in India, is looking to go deeper into the market with the Ninjacart investment. It seems that Walmart is planning to expand its influence in the food logistics sector with Flipkart expanding its grocery vertical to five cities this year, Walmart could be looking at a future integration of Ninjacart’s supply chain and Flipkart’s distribution.
This is a segment that has seen heightened interest from a slew of large companies including Udaan, Amazon, BigBasket and Reliance industries, nudging Walmart to move quickly.
NinjaCart is India’s largest B2B (Business to Business) Fresh Produce Supply Chain Company. NinjaCart was founded by Nagarajan, Kartheeswaran K K, Ashutosh Vikram, Sharath Loganathan and Vasudevan Chinnathambi in 2015. The company picks up the farm produce directly from the farmer’s fields and delivers it to the businesses. The company claims to have perfected its sourcing and operations for achieving scale and lowering costs. NinjaCart delivers over 400 tonnes of produce every day to over 50,000 stores, benefiting more than 25,000 farmers.
It has a presence in seven major cities in India and the current inflow would help them expand beyond.
NinjaCart connects farmers directly with businesses, cutting out middlemen and helping them earn about 20% more for what they produce. The company provides a complete supply chain suite through its network of collection centres, fulfilment centres and distribution centres.
In April, NinjaCart raised Rs 624.8 crore, led by Tiger Global. In June, the company raised an additional Rs 62.4 crore at a valuation of Rs 2,429.1 crore from Tanglin Venture Partners and Tiger Global. Prior to that, it raised Rs 20 crore in debt from Trifecta Capital. The company’s top investors include Accel Partners and Tiger Global. And has held discussions with multiple large conglomerates for a potential investment, including Amazon India.