Flipkart raises about $100 million in a new funding round for fresh produce supply chain start up Ninjacart. This is one of the largest funding in the e-commerce platform to spread its wings in India as a fast growing online grocery business.

Ninjacart’s valuation is likely to jump around $750-800 million post the financing round from the previous level of $500 million. Once the investment is formalized, Flipkart’s partnership with Ninjacart is expected to deepen, as it looks to boost its grocery business to take on rivals like Reliance Industries' Jio Mart, Amazon India, and Tata-owned Big Basket.

“Ninjacart’s business has made a good recovery over the last one year and the new funding is closing now; other existing investors are also likely to participate in this round,” adds Walmart.

Ninjacart, founded in 2015, currently drives in seven cities including Bengaluru, Chennai, Hyderabad, Pune, Delhi and Mumbai. Flipkart Quick is available in 10 cities with plans to reach 200 cities by end of next year.

Ninjacart stake holders counts Tiger Global, Accel Partners as well as Nandan Nilekani and family among its investors.

As part of its increasing focus on the sector, the Flipkart Group is mounting its online store Supermart and 90-minute hyperlocal delivery service Flipkart Quick, which mainly concentrates on groceries and has select products in other categories like electronics.

Ankur Pahwa, partner EY India says, “As e-commerce companies increasingly favour a dual approach to the e-grocery business such as instant delivery with limited items, while also offering a wider range of products with discounts and other incentives. Having control over the supply chain helps in ensuring wider selection of products, higher quality control, certainty in terms of supply, and better unit economics”.