Walmart, Flipkart re-up in India's Ninjacart
US retailer Walmart and Flipkart, its India-based e-commerce platform, have made an additional investment in local fresh produce delivery business Ninjacart.
The size of the deal was not disclosed, although The Economic Times put it at approximately $30 million. Walmart – which acquired a majority stake in Flipkart in 2018 at a valuation of $24 billion and led a $1.2 billion follow-on round in July – first backed Ninjacart in late 2019.
Earlier that year, Tiger Global Management invested INR6.25 billion ($89.1 million) for a 26% stake in Ninjacart at a valuation of $320 million. It followed a INR2.5 billion funding round in December 2018 from the likes of Accel Partners, Qualcomm Ventures, Syngenta Ventures, Neoplux, and HR Capital.
Ninjacart was founded in 2015 as a hyperlocal grocery delivery business but later shifted to a B2B model, connecting vegetable and fruit farmers directly with merchants. The model is said to improve economics for founders, allow retailers to source directly from growers at competitive prices, and give consumers greater supply chain visibility and traceability.
The company claims to operate a supply chain equipped to move 1,400 metric tons of perishables from farms to businesses, every day, in less than 12 hours. During the COVID-19 lockdowns, Ninjacart launched a range of initiatives, including customer-facing food ordering apps and direct-to-apartment delivery. It also introduced a 100% traceability platform to improve food safety.
The new capital will be used to expand into new markets and develop new offerings for emerging customer segments. Kalyan Krishnamurthy, CEO of Flipkart, noted that India’s e-grocery market has seen significant growth in recent months as consumers become used to ordering fresh produce online. Flipkart expects the alliance with Ninjacart to support its grocery and hyperlocal delivery services.
“We will continue to make investments to offer the best produce to our customers and support livelihoods and sustainable growth for local farmers, producers and the supply chain ecosystem. Our pilots and current business engagement with Ninjacart have been encouraging as we leverage technology to address changing consumer behavior across the country,” he said in a statement.
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