Ninjacart got a massive funding boost on Wednesday after Walmart and its subsidiary company as well as India’s homegrown retailer giant announced undisclosed amount of investment in the B2B agritech startup. Earlier this year, it was reported that even Amazon was in talks to infuse funds in the Bengaluru headquartered company. However, the negotiations apparently failed, paving way for Flipkart and Walmart to make investment.
A press statement issued by Flipkart and Walmart said joining hands with Ninjacart will aid both players in strengthening direct sourcing of fresh produce for Walmart India’s Best Price B2B cash-and-carry stores and Flipkart’s online grocery business Supermart.”
In a nutshell, this new pact will help Flipkart to supply fresh fruits and vegetables to its customers and thereby expand its grocery business further. Although the e-commerce giant has been running a pilot project in Hyderabad, Ninjacart’s superior supply chain management in grocery space may have convinced the Amazon’s main rival to pick up stake in the company.
Off late, India’s top e-commerce players have been trying to make a considerable dent in India’s online grocery business, with challenges like wafer thin margin and logistic problems posing as a major hindrance in their quest. The presence of Alibaba backed and existing market leader BigBasket, of course, is adding more pressure on the e-commerce players.
Being a B2B player that addresses logistical problems, Ninjacart can play a major role in boosting online retailer’s chances in succeeding in the tough grocery business. And Flipkart therefore may feel content that it has piped its main rival in picking up stake in a major supply chain management startup.
Ninjacart was founded in 2015 with an aim to revolutionize supply chain management in grocery space. The platform claims to source fresh produce from 20,000 farmers and sell to nearly 60,000 retailers across the entire length and breadth of the country. Flipkart and Walmart’s fresh fund infusion is company’s second fundraising exercise in the current year. Earlier this year, it had raised $100 Mn from Tiger Global.
Ninjacart counts several high-profile investors including Accel, Steadview Capital, Qualcomm Ventures, and Nandan Nilekani.