Snapdeal leads $36M Series B round in on-demand grocery startup PepperTap
Grocery focused on-demand delivery platform PepperTap has raised $36 million Series B funding from Snapdeal, Sequoia India, SAIF, and other new investors. The funding also saw participation from new investors like Ru-net, JAFCO, and BeeNext.
The Gurgaon-based company is in advance talks to expand this round by another $20 million from US-based financial investors. PepperTap is currently doing 15-17 K orders on a daily basis and with the infusion of fresh funds, it plans to expand its presence to 75 cities by the end of this fiscal.
Speaking on the investment, Navneet Singh, Co-Founder and CEO of PepperTap, commented, “PepperTap has been on a hyper-growth track since its inception nine months ago. From less than $1 million GMV run rate at the start of the fiscal year 2015-16, we are solidly on track to end the year with a GMV run-rate of over $250million. Investment by an established player like Snapdeal is a stamp on our asset-light, low burn business model, and our execution track record. We look forward to leveraging Snapdeal’s experience to help our partner stores develop their capabilities and multiply their sales.”
Unlike other hyperlocal delivery startups, Peppertap only focuses on grocery and vegetables. Delhi (NCR) is the biggest market for the company followed by Hyderabad, Bengaluru, and Pune. It has over 3,000 employees but expects to have more than 5,000 staff by the year end to support its operations.
Kunal Bahl, Co-Founder and CEO of Snapdeal, added, “We are excited to be entering into a strategic partnership with PepperTap. Navneet and his team have done a phenomenal job in building PepperTap into India’s leading grocery ordering platform. We look forward to working closely with PepperTap to make them very successful, leveraging the capabilities we have built in Snapdeal’s ecosystem.”
The on-demand phenomenon has caught up in India in a big way in no time. Grocery and veggie segment seems to be a strong composition for raising funds and scaling fast. With this investment, Snapdeal will have good control over the overall hyperlocal logistics. The company had picked up minority stake in the e-commerce focused logistics firm Gojavas.
The company competes with Grofers, Bigbasket, Localbanya, Zopnow, and Jiffstore among several others. However, Grofers and PepperTap are front-runners for the leadership position in this segment. This massive round will help PepperTap to spread its wing to tier II and III cities, hiring, and marketing. On the lines of Grofers, PepperTap is likely to announce series of media buying over the next quarter.