Walmart and Flipkart invest in Agri-supply chain start-up Ninjacart
Partnering with Ninjacart will help Walmart and Flipkart strengthen direct sourcing of fresh produce for Walmart India's Best Price B2B cash-and-carry stores and Flipkart's online grocery business Supermart.
source- public domain
Walmart and Flipkart recently announced a joint strategic investment in Ninjacart, a fresh produce supply chain start-up. The three partners aim to help ensure better access to high-quality fresh produce for more retailers and consumers across India while also creating economic opportunities for farmers, a joint statement said.
The investment will also support Ninjacart to expand its customer base, reach new cities and gain exposure to global best practice to enhance the efficiency of the local fresh produce ecosystem, Flipkart said in a statement.
Partnering with Ninjacart will help Walmart and Flipkart strengthen direct sourcing of fresh produce for Walmart India's Best Price B2B cash-and-carry stores and Flipkart's online grocery business Supermart, it said.
"The investment will also support Ninjacart to expand its customer base, reach new cities and gain exposure to global best practice to enhance the efficiency of the local fresh produce ecosystem", the statement added.
"Developing Flipkart Supermart over the past year, we have focused on creating the right infrastructure, supporting local farmers, producers and food processors, and building sustainability into the ecosystem, all while creating thousands of new jobs and bringing quality, convenience and value to consumers. In Ninjacart, we see a company that shares our values, our pioneering mind set and our commitment to tech-driven innovation that improves life in India”, said Kalyan Krishnamurthy, CEO, Flipkart Group.
Thirukumaran Nagarajan, CEO and co-founder of Ninjacart, said, "We are excited that Flipkart and Walmart are joining us to make this vision a reality and showing confidence in our technology and business model. With their support, we see new possibilities to improve the lives of our farmers, retailers and restaurant partners."
"Ninjacart’s focus on direct-from-farm sourcing resonates well with Walmart’s commitment to supporting farmers in India. 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, Walmart India.
The value of the transaction, which is expected to close by year-end 2019, has not yet been disclosed.
The statement mentioned that, “Founded in 2015, Ninjacart moves over 1,400 tons of fresh produce per day, having doubled its volumes in the last four months, it was stated. The paperless Ninjacart supply chain creates a seamless link between its more than 44,000 farmer suppliers and its customer base of 60,000 kirana stores and restaurants across seven cities.”
"Ninjacart provides 100 percent traceability along the supply chain and has slashed food wastage to less than one percent, compared to 35 percent in traditional supply chains", it said.
Ninjacart, which raised $90 million in a financing round led by Tiger Global earlier this year, has held discussions with multiple large conglomerates for a potential investment, including Amazon India, as they look to get a piece of India's largest business-to-business opportunity.
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.