Flipkart Puts $145 Million in Agritech Startup, Ninjacart

Walmart-owned Flipkart Group has announced to invest $145 million in Ninjacart, the agritech startup. The investment is the third time the company has put its investment into a fresh produce supply company. The fresh round of money will strengthen the company’s technology and infrastructure to improve the lives of millions of participants, farmers, retailers, resellers, consumers, and supply chain participants.

The statement released by the company reveals that Flipkart's investment validated Ninjacart’s vision to facilitate high-quality produce for more retailers and consumers from the different parts of India while generating economic opportunities and better incomes for farmers in India.

Ninjacart has been dedicated to developing significant-tech platforms and supply chain infrastructures over the past two years. In October 2020, Flipkart Group had invested an undisclosed sum of money in the Bangalore-based company. The company’s other investors are Accel, the venture capital firms, Qualcomm Ventures from the USA, HR Capital from Russia, Mistletoe, Japan-based Venture capital firm cum accelerator, NRJN Trust of Nandan Nilekani of Infosys, and Neoplux, the venture arm of Doosan Group of South Korea.

Thirukumaran Nagarajan, Kartheeswaran K K, Ashutosh Vikram, Sharath Loganathan, and Vasudevan Chinnathambi founded Ninjacart in 2015 and so far raised funds from eminent global ventures including Tiger Global, Accel, Tanglin, Steadview, Syngenta, Nandan Nilekani, and Qualcomm, among others.

Kalyan Krishnamurthy, CEO of Flipkart Group, said, “Flipkart is a homegrown company and has been concerned with developing the right infrastructure and technological solutions in support for local farmers, food processors, and producers. Through this investment, the company is initiating strengthening its grocery footprint as more and more consumers use the e-grocery channels for quality and affordable options in the fresh category. Flipkart’s association with Ninjacart showcases the mutual trust and testament to the continued commitment and success in the endeavor to create a democratic and organized agriculture market.”

Flipkart - Aiming to Score Big!

Currently, Flipkart is offering groceries in about 1,800 cities and towns, and it hopes to increase the number of 2,000 by mid-next year. The company assures that adding fresh fruits and vegetables is integral to the expansion strategy. The company is aggressively investing in boosting technology capabilities in line with the end consumer's highest and most stringent quality checks.

In addition, the company strives to bring efficiencies in the community e-grocery shopping model as it deepens its focus on partnering with Farmer Producer Organizations (FPOs) to access only the highest-quality produce, staples, pulses, and spices, opening new revenue opportunities to farmer communities across the country.

Ninjacart, the agritech company, has been working on the grassroots levels with farmers to help more and more farmers generate growing revenue channels and facilitate them to use a well-defined supply chain technology to solve basic issues such as distribution inefficiency and price risks.

Commenting on the Indian agriculture sector, Thirukumaran Nagarajan, Co-founder, and CEO of Ninjacart, said, “India is witnessing a promising phase of a would-be formalized agriculture industry. With better technological infrastructure, connectivity, GST, digitalization, seamless payments, and much more, Ninjacart offers a path-breaking opportunity to organize the country’s agro-ecosystem stronger than ever before. The company hopes to create value through its massive investment.” 

He added that the funds would be allocated to building world-class teams, scalable tech platforms to manage and grow the network for all.

Reportedly, Ninjacart has finalized an MoU with the Union Ministry of Agriculture and Farmer Welfare to work for developing market linkages and promoting best practices in the farming sector. The company’s Agri Marketplace Platform (AMP) allows farmers to earn a fair price for their products and offer consumers better food and value for their investment.