NinjaCart valued above $350 million
Amazon (AMZN) might make an investment to purchase a stake in Indian fresh produce supplier NinjaCart, according to a report from The Economic Times citing people familiar with the deliberations. NinjaCart operates a platform that connects fruit and vegetable farmers with retailers across India. The company has a presence in seven cities across India. NinjaCart facilitates the supply of 25,000 tons of fresh produce each month.
NinjaCart raised $100 million in additional capital in a financing round that closed in April. The round caused the startup’s valuation to rise to $340 million. Qualcomm (QCOM), through its Qualcomm Ventures arm, is one of the investors in NinjaCart.
In terms of international markets, India is a top priority for Amazon. The company has committed to investing more than $5.0 billion to grow its business in India. India’s massive population of more than 1.3 billion people, its swelling middle-class consumer base, and the deeper penetration of the Internet and smartphones have made it a coveted market for many global technology companies. China’s Alibaba (BABA) backs several Indian startups including mobile payment and grocery retail leaders Paytm and BigBasket, respectively. In 2017, Microsoft (MSFT), eBay (EBAY), and Tencent (TCEHY) invested $1.4 billion in Flipkart. Walmart bought a controlling stake in Flipkart for $16 billion last year.
Food market booming in India
Amazon is interested in purchasing a stake in NinjaCart. Currently, food retail is a booming business in India. According to Forrester estimates, grocery purchases accounted for more than 61% of all the retail spending in India last year.