Ninjacart, a business-to-business (B2B) marketplace for agricultural produce, on Friday said it has launched a seed fund of $25 million (around Rs 187 crore) to back new-age startups in the agriculture space.
The company, operated by 63Ideas Infolabs Pvt Ltd, will back entrepreneurs and tech innovators with seed investments, who offer sustainable and tech-enabled solutions to boost tech innovation and disruption.
It will also bet on companies with strong technical skills, but without a solution or idea.
Ninjacart said that the investments will drive a boost to new ideas and business models aimed at addressing high-priority issues in the agriculture ecosystem across the globe.
In addition to funding, the marketplace will also provide access to the agri-substantial platform's technology infrastructure and data pools, as well as growth-stage consultancy services.
Ninjacart, set up in 2015, started as a hyperlocal grocery delivery service before transitioning to a B2B model. Farmers may use the startup's platform to sell veggies and fruit directly to businesses including shops, retailers, and restaurants.
The company claimed it has intensified its focus on partnering with farmer producer organisations (FPOs) to provide access to high-quality fresh produce, staples, pulses and spices, bringing new revenue opportunities to farmer communities across the country.
“Joining forces with Ninjacart will open windows for emerging enterprises allowing them to access valuable data, supply chain infrastructure, technology, farmers, and existing partners. The startups will be introduced to VCs, angel investors, and incubators. The procedure would be simple, allowing early-stage entrepreneurs to turn their concepts into concrete action on the ground,” said Thirukumaran Nagarajan, Co-Founder and CEO, Ninjacart.
Ninjacart implemented a Rs 100 crore (about $13.4 million) employee stock ownership plan (ESOP) in January. Current and past workers having vested ESOPs as of December 2021 are eligible to sell all of them, which will aid the startup's objective of building technology and infrastructure for farmers, resellers, retailers, consumers, and supply chain partners.
In December, Ninjacart raised $145 million (Rs 1,095 crore) in a round of funding from existing investors, US retail giant Walmart Inc, and its Indian e-commerce arm Flipkart. Earlier in 2021, Ninjacart inked a deal with the Union Ministry of Agriculture and Farmer Welfare to strengthen the market linkages and promote best practices in the farming sector.
In December 2019, the company raised funding from Walmart and its Indian e-commerce arm Flipkart. They did a follow-on round of funding in October last year. It also secured $90 million from US-based investment firm Tiger Global Management in April 2018.
Ninjacart’s investors include venture capital firms Accel, US-based Qualcomm Ventures, Russia’s HR Capital, Japanese venture capital firm-cum-accelerator Mistletoe, Infosys Co-Founder Nandan Nilekani’s NRJN Trust and South Korea-based Neoplux, the venture arm of Doosan Corp.