Walmart and Flipkart will jointly make a strategic investment in supply chain start-up Ninjacart. The deal 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.
Ninjacart is India's largest fresh produce supply chain company. The startup connects producers of food directly with retailers, restaurants, and service providers using in-house applications that drive end to end operations. Currently, the firm’s supply chain is equipped to move 1400 tonnes of perishables from farms to businesses, every day, in less than 12 hours.
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.
"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 mindset and our commitment to tech-driven innovation that improves life in India," Kalyan Krishnamurthy, CEO, Flipkart Group, said.
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."
The value of the transaction has not yet been disclosed.
Walmart India president and CEO Krish Iyer said 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," Iyer said.
The transaction is expected to be closed by year-end.