Walmart, Flipkart invest in fresh produce supply chain startup Ninjacart

Walmart and Flipkart have announced a strategic investment in Ninjacart, an Indian business-to-business startup that provides supply chain solutions in the fresh produce market. The size of the investment was not disclosed.

Photo credit: Pxhere

According to a statement, the deal, which is expected to close by the end of this year, will help Walmart and Flipkart strengthen direct sourcing of fresh produce for Walmart India’s cash-and-carry stores and Flipkart’s online grocery business, Supermart.

“We are working towards our commitment of sourcing 25% of produce in our Best Price cash-and-carry stores directly from farmers by 2023. This would help accelerate market access for them and reduce transportation costs,” said Krish Iyer, president and CEO of Walmart India.

The investment will also help Ninjacart expand its customer base, reach new cities, and gain exposure to global best practices, the statement said.

Founded in 2015, the Tiger Global-backed startup uses big data, predictive analytics, mobile applications, and internet of things. It claims that its supply chain algorithms enable the movement of 1,400 tonnes of perishables from farms to businesses every day in less than 12 hours.

It connects more than 44,000 farmer suppliers with its customer base of 60,000 kirana stores (Indian mom and pop shops) and restaurants across seven cities.

Walmart and Flipkart’s investment comes after Ninjacart secured US$4.2 million in debt financing from Trifecta Capital in November and nearly US$90 million from Tiger Global in April as part of its US$100 million series C round. Some of its other backers include Accel Partners, Qualcomm Ventures, and Syngenta Ventures, among others.