Introduction
With an aim to delayer the Agri supply chain, NinjaCart started operations in 2015 to source fruits and vegetables directly from farmers and deliver them to businesses across cities within 12 hours, thus following the just in time supply chain.
NinjaCart, a B2B Fresh Produce Supply Chain Company, leverages technology with the logistics network to add value to stakeholders (farmers, retailers and supply chain partners) in terms of quality, affordability and accessibility.
According to the recent Ernst & Young report titled ‘Agritech-towards transforming Indian Agriculture’, the Indian Agritech market is estimated at $24 billion with a current market penetration of 1%. The total market opportunity stands at $170 billion in terms of turnover.
NinjaCart operates in the agritech segment of supply chain tech and output market linkage which has a market potential of $12 billion with increasing demand generation from urban population.
Business Model
The business model aims to remove inefficiencies and intermediate middlemen in the fruits and vegetables supply chain.
NinjaCart directly connects farmers with retailers to help framers avail better prices and consistent demand along with helping retailer’s source fresh vegetables at competitive prices directly from farmers.
The startup removes demand and price uncertainty among the 7000 framers on their platform by communicating the actual demand and price a day before harvest. This helps framers know their earnings before the harvest and avoid price risk and safeguard earnings.
The produce is collected from framers at collection centres, where it is weighted, tagged, and put into crates. Once the process is completed, the framers receive a message about the price and the quantity supplied. The 100% amount without commission is credited to the framer’s bank account within 24 hours of purchase.
NinjaCart then moves the crates to the fulfilment centres where it uses dollies for the loading and unloading process, works faster than the traditional lift and place.
The produce is moved to the distribution centre from where it is dispatched based on areas; to retailers, shops and restaurants.
This entire process is monitored through an app built in house by the startup.
Retailers can order the desired quantity of fruits and vegetables through this mobile application, providing the order ID and delivery date.
Use of Technology
Technology and data make NinjaCart what it is today and will define its tomorrow.
NinjaCart is banking on machine learning to forecast demand for perishable goods (fruits & vegetables), pricing engine, and crop recommendation to farmers leading to lower food wastage and higher predictability and sustainability.
The platform also invests in supply chain technology and infrastructure to reach a more extensive customer base and more farmers.
Use of radio frequency identification (RFID) technology to track deliveries and ensures the produce
Framers are educated through awareness programmes about NinjaCart, the benefit of selling directly to the venture and the desired quality of the produce.
USP
Being a tech enabled supply chain, NinjaCart helps to lower cost, increase speed and eliminate waste. The supply chain facilitates in getting the produce to designated stores in less than 12 hours, with less than one percent of food wastage whereas the traditional supply chain takes more than 12 hours to reach stores and food wastage is more than 30 percent.
Changing how retailers manage fruits and vegetables: In the traditional supply chain, retailers have to go to the market daily, invest in logistics, manage the price and have to check in on the quality by themselves. With NinjaCart, they can just focus on selling and delivering great customer experience and do not have to worry about procuring and merchandising
100% traceability: At NinjaCart, they trace the food 100 percent using RFID solutions, which makes it possible to connect a tomato in the store shelf to a farmer and how the tomato is produced. Traditional supply chains lack traceability.
Hygiene and quality: Vegetables are handled with an “one-touch” method and transported hygienically in clean crates, ensures that customers receive clean vegetables, unlike in the traditional market.
Changing how farmers look at selling their harvest: Traditionally, farmers did not know what the demand was as well as the appropriate price at which the produce needs to be sold during the time of harvest. With NinjaCart, farmers first know about the demand and then they can harvest crops, based on the demand. Also, farmers do not face uncertainty on the rates.
Benefits for farmers and businesses
Funding
Conclusion
The current gap in the Indian market is the need for quality produce that is affordable and accessible. NinjaCart is working towards filling this gap by disrupting the market with technology and data. The platform has an immense market potential as it fulfils the need for a daily product. With rapid increase in smart phone penetration, consumer needs for quality food, growing awareness about food wastage are boosting elements for the agritech startup. The ability to innovate and build partnerships with several stakeholders will help to build scalability.
This post was written in collaboration with Asif Yahiya Sukri LLP. Asif Yahiya Sukri LLP provides unparalleled personalized financial services to a broad range of clients across different geographical locations. With a presence in the USA, India and the MENA region, they ensure that all of your financial decisions are made carefully and with your best interests in mind. They are innovators who understand what goes into building companies.
You can also reach out to them on info@aysasia.com
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