Walmart, Flipkart Invest In Bengaluru-Based Ninjacart
U.S. retail giant Walmart and Flipkart on Wednesday said they will jointly invest in Bengaluru-based business-to-business supply chain company, Ninjacart.
The three partners aim to help ensure better access to high-quality fresh produce for retailers and consumers across India while also creating economic opportunities for farmers, a statement said.
The company however did not disclose the financial details of the transaction.
"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 added.
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.
Ninjacart was founded by Thirukumaran Nagarajan, Kartheeswaran KK, Ashutosh Vikram, Sharath Loganathan and Vasudevan Chinnathambi in 2015.
In the past, Ninjacart has raised money from funds such as Tiger Global, Accel Partners, Steadview Capital, Syngenta Ventures, Qualcomm Ventures and Infosys co-founder Nandan Nilekani.
Ninjacart connects farmers to retailers via a network of more than 200 collection centres and 1,200 warehouses across India. It moves over 1,400 tonnes of fresh produce per day.
It has over 44,000 farmer suppliers and a customer base of 60,000 kirana stores and restaurants across seven cities.
"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," Flipkart Group CEO Kalyan Krishnamurthy said.
Thirukumaran Nagarajan, CEO and co-founder of Ninjacart, said with the support of Flipkart and Walmart, the company sees new possibilities to improve the lives of its farmers, retailers and restaurant partners.
The transaction is expected to close by the end of the month.
"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 percent of produce in our Best Price cash-and-carry stores directly from farmers by 2023," Walmart India President and CEO Krish Iyer said.
The investment, he said, will help accelerate market access for farmers and reduce transportation costs.