Walmart, Flipkart invest in Indian supply chain startup Ninjacart
Walmart and its subsidiary Flipkart have jointly invested in Indian fresh produce supply chain startup Ninjacart, reported the Economic Times (ET). Flipkart, the largest online retailer in India, has ambitions to expand into broader grocery sector.
Walmart was likely to have invested about US$10m in Ninjacart in the first transactions and then move investments up to a potential US$50m.
However, Flipkart and Walmart haven't disclosed the official value of the deal. The companies expect the transaction to close by the end of 2019.
The companies anticipate that the deal will allow Ninjacart to expand its customer base. In return, Ninjacart expects the strengthen both Flipkart's online business and Walmart's Best Price B2B cash and carry stores. Sourcing fresh produce is critical to Flipkart's goals, it told ET. It will provide Flipkart with fresh produce.
"Flipkart wants to offer fruits and vegetables to its customers, and while it has been running a pilot project in Hyderabad, the company has been looking for partners to work with," a source was quoted saying.
What the companies have to say
"Ninjacart, with its heavy use of technology and data analytics, solves the very difficult issue of supply chain surrounding fruits and vegetables.”
CEO of Ninjacart also expressed excitement for the future.
"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."
Walmart further said that its commitment to supporting small farmers in India is in line with this deal. It stated that it is working towards sourcing 25% of produce in its Best Price stores directly from farmers by 2023.
Ninjacart was founded in 2015 and operates a business-to-business supply chain infrastructure. It works with more than 44,000 farmer suppliers, detailed the article. Additionally, its customers span across 60,000 kirana stores and restaurants in seven cities. Currently, it moves over 1,400 tons of fresh produce a day.