Is Flipkart trying to strengthen its e-grocery arm by investing in NinjaCart?
The US-based retailer Walmart Inc and Flipkart Group are once again in the news with a $30 million investment in NinjaCart. According to official sources, there will be a second round of funding in NinjaCart after December 2019.
NinjaCart is Bangalore-based fresh produce supply startup established in 2015, which sells produce directly from farmers to end-users with well-established supply chain and distribution centres. It initially raised $90 million from Tiger Global, an American investor, and this deal is the third source of its funding.
“The fresh set of investments from Walmart and the Flipkart Group takes us one step closer to our vision of making food safe and accessible for the billion people and changing the way food reaches our plate. We will continue to invest in areas that impact the lives of customers and farmers positively," said Thirukumaran Nagarajan, CEO and co-founder, NinjaCart.
After the pandemic, the e-grocery segment increased significantly from expected growth of $1.9 billion in 2019 to $3 billion by the end of 2020. On the other hand, the market is studded with Amazon's Fresh and brand-new Relance's JioMart, along with startups like BigBasket and Groofers. That's why Flipkart is trying to leverage the new NinjaCart's supply chain to strengthen its 'SuperMart' and 'Flipkart’s Quick' grocery services.