US-based retailer Walmart has committed to investing nearly US$50m into Ninjacart, a B2B fresh produce supply chain platform, according to local news sources.
An Economic Times report said the first tranche of this investment, reported to be US$10m, is set to close before the end of August and Walmart will get a board seat in Ninjacart as part of the transaction.
This new investment follows Ninjacart’s announcement in April it had raised US$100m funding from Tiger Global.
Currently, Ninjacart connects fruit and vegetable growers directly with retailers using a technology-integrated supply chain.
The company said it serves more than 17,000 retailers across seven major cities in India — Bangalore, Chennai, Hyderabad, Ahmedabad, Pune, Mumbai, and Delhi. It said it delivers more than 1000 tonnes of fresh produce daily and focuses on moving it from growers to retailers in less than 12 hours.
This investment will see Walmart gain another foothold in the Indian market, which it entered in 2009. It’s subsidiary, Walmart India, already owns and operates 26 Best Price stores and operates three fulfilment centres in the country.
Additionally, in 2018 it completed India’s largest e-commerce deal when it acquired a 77 per cent stake in e-commerce platform Flipkart, for US$16bn.
According to the Economic Times report, even though Walmart is scaling up Flipkart’s grocery business, there will be no direct integration of Ninjacart with Flipkart.