Walmart, Flipkart invests $145M in Ninjacart to organize the Agri Ecosystem

Bengaluru-based agritech startup Ninjacart today announced it has raised $145 million (or Rs 1,097 crore) in a fresh round led by US-based Walmart and e-commerce company Flipkart. The company claimed this to be the biggest deal in India's agritech ecosystem.

Prior to this, Ninjacart had raised $9.5 million in May 2021 from Switzerland-based existing investor Syngenta Ventures.

According to the company's statement, The latest investment from Flipkart and Walmart further validates and strengthens Ninjacart’s vision to ensure better access to high-quality fresh produce for more retailers and consumers across India while also creating economic opportunities & better incomes for farmers in India.

With this round of funding, The agritech startup will focus on building technology and infrastructure to organize, empower and enhance the lives of millions of Agri value chain participants including farmers, resellers, retailers, consumers, and supply chain participants.

Apart from this, Ninjacart has been actively investing in tech platforms and supply chain infrastructure over the past two years.

This is Flipkart's third-time investment in Ninjcart. In December 2019, The e-commerce company had first participated in Ninjacart's $10 million Series C funding round. Later in October 2020, Walmart and Flipkart Group had pumped in an undisclosed amount of funding in the Bengaluru-based agritech startup.

Founded in 2015 by Thirukumaran Nagarajan, Kartheeswaran K K, Ashutosh Vikram, Sharath Loganathan, and Vasudevan Chinnathambi, Ninjacart is a business-to-business (B2B) fresh produce supply chain that connects farmers, manufacturers, and brands to retailers directly.

Earlier this year, Ninjacart had signed an MoU with the Union Ministry of Agriculture & Farmer Welfare to strengthen the market linkages and promote best practices in the farming sector. 

Speaking on the investment, Kalyan Krishnamurthy, CEO & Flipkart Group, said: "As a homegrown company, we have constantly focused on creating the right infrastructure and technological solutions that support local farmers, producers, and food processors."

"With this investment, we are further able to strengthen our grocery footprint and offering as consumers across the country throng to e-grocery for quality and affordable options in the fresh category. Through technology, we are able to bring great efficiencies in the value chain and create an impact by providing the farming community additional opportunities for better income," he said.

"Our investment and partnership in Ninjacart over the years is a testament to the continued commitment and success we have seen in our endeavor to create a democratic and organized agriculture market," he adds.

Flipkart offers groceries in 1,800 cities and towns and aims to take its offering to 2,000 more towns by mid-next year. Fresh fruits and vegetables will be an integral part of the expansion, with the company investing in technology capabilities to ensure the highest and most stringent quality checks for the end consumer.

The e-commerce company also said that it is working to bring efficiencies in the community e-grocery shopping model. The company has intensified its focus on partnering with Farmer Producer Organizations (FPOs) to provide access to high-quality fresh produce, staples, pulses, and spices, bringing new revenue opportunities to farmer communities across the country.

On the other hand, Ninjacart claims to have helped over 100,000 farmers across 150 villages to generate better revenues. Its supply chain technology has helped solve problems such as distribution inefficiency and price risk, it said.

Speaking on the development, Thirukumaran Nagarajan, Co-founder & CEO, Ninjacart, said:

"We are ecstatic that Flipkart and Walmart continue to partner with us in making this vision a reality by believing in our technological expertise and core values. India is at the cusp of formalizing the agriculture industry, with the advent of better road connectivity, GST, seamless payments, digital infrastructure, etc."

Apart from Ninjacart, Startups like TartanSense, Fyllo, Reshamandi, Origo, Ergos, and Omnivore are also working in the agritech space.

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