- Walmart is likely to invest about $10 million in the first tranche and going up to as much as $50 million.
- Ninjacart will strengthen both Flipkart’s Supermart, and Walmart’s Best Price B2B cash-and-carry stores.
- With its investment in Ninjacart, Supermart will now look to expand its presence over the next 18 months.
While the terms of the transaction were not disclosed, sources had said earlier that the Bentonville, Arkansas-headquartered retail behemoth was likely to invest about $10 million in the first tranche and going up to as much as $50 million, in Ninjacart. The deal is the latest indicator of both Flipkart and Walmart’s ambitions in the broader grocery segment.
Under its terms, Ninjacart will strengthen both Flipkart’s online grocery business Supermart, and Walmart’s Best Price B2B cash-and-carry stores, and their respective abilities to directly source fresh produce. “Flipkart wants to offer fruits and vegetables to its customers, and while it has been running a pilot project in Hyderabad, the company has been looking for partners to work with. Ninjacart, with its heavy use of technology and data analytics, solves the very difficult issue of supply chain surrounding fruits and vegetables,” a source privy to the deal details told ET on the condition of anonymity.
With its investment in Ninjacart, Supermart will now look to expand its presence over the next 18 months, the source quoted earlier in the story said. The deal will allow the new strategic investors to work with Ninjacart in utilising the supply chain infrastructure the latter has created, particularly around perishable goods, ensuring that it is cost effective after taking into account forecasting, pricing and demand.
“Developing Flipkart Supermart over the past year, we have focused on creating infrastructure, supporting local farmers, producers and food processors, and building sustainability into the ecosystem, all while creating thousands of jobs and bringing quality, convenience and value to consumers,” Kalyan Krishnamurthy, CEO, Flipkart Group, said in a statement.
“We are working towards our commitment of sourcing 25% of produce in our Best Price cash-and-carry stores directly from farmers by 2023. This would help accelerate market access and reduce transportation costs," said Krish Iyer, CEO, Walmart India.
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