Bengaluru-based Ninjacart, an online B2B marketplace that connects farmers and brands to retailers, has raised about $1.1 million from venture debt firm Trifecta Capital.
Following the investment, Ninjacart will use the funds to invest in capital expenditure and strengthen the supply chain infrastructure of the company.
Ninjacart was launched in May 2015 as a hyperlocal grocery delivery company by Thirukumaran Nagarajan, Vasudevan Chinnathambi, Kartheeswaran K K, Sachin Jose and Sharath Loganathan. After seven months of operations, the startup pivoted its model to become a full-fledged B2B marketplace.
The startup helps supermarkets, kirana stores and standalone shops to source fresh fruits and vegetables, staples and FMCG goods at competitive prices directly from farmers and brands.
The platform does this effectively at lower cost and larger scale, using smart supply chain enabled by strong technology, data science, warehouses and integrated logistics network.
Currently operational only in Bengaluru, Ninjacart claims to have processed more than 150 tonnes of fruits and vegetables per day and claims to break even in the capital city. Besides, it also plans to establish itself in Chennai.
In its earlier interaction with Entrackr, Ninjacart emphasised that the potential in fresh produce is huge enough to focus narrowly and crack the space rather than get distracted with other categories at this point in time. Lack of competition and more than 95 per cent un-organised space makes this a huge market to tap.
The agriculture sector is key to India’s growth in GDP and contributes to more than 55 per cent of employment in the country. According to the data by Euromonitor, vegetables and fruits marketing is growing at nine per cent on a yearly basis and expected to reach $224 billion by 2020.
In April 2017, Ninjacart raised $5.5 Mn from Accel Partners, Nandan Nilekani’s NRJN Trust, Mistletoe, Qualcomm Ventures and M&S Partners. Prior to that, it had raised $3 million from Accel Partners, Qualcomm Ventures, ZopSmart, the parent of online grocer ZopNowmand others.
In agricultural supply chain segment, Crofarm, FarmLink, Gobasco, Farm Taaza, and others have also raised funds in the past six months.