PepperTap, Gurgaon-based an on-demand hyperlocal grocery delivery service, has closed a Series B funding round of $36 million, led by Snapdeal along with existing investors Sequoia India and SAIF Partners. The funding also saw participation from new investors like Ru-net, JAFCO, and BeeNext.
In June, company officials had confirmed that they were soon closing a $60 million round in Series B. But it appears that they managed to raise only a part of it. The company is still looking to raise another $20 million now.
With this investment, PepperTap plans to expand its presence to 75 cities across India by the end of the current fiscal year. The company also plans to invest in strengthening its technology and supply chain capabilities. It expects to have more than 5,000 staff by year end to support its operations.
Speaking on the investment, Navneet Singh, Co-Founder and CEO, PepperTap, commented, “PepperTap has been on a hyper-growth track since its inception 9 months ago. From less than $1 million GMV run rate at the start of Fiscal Year 2015-16, we are solidly on track to end the year with a GMV run-rate of over $250 million. With this investment, We look forward to leveraging Snapdeal’s experience to help our partner stores develop their capabilities and multiply their sales.”
Peppertap is competing big time with Grofers (Also backed by Sequoia), BigBasket and other veteran players in the space. While it exists in more number of cities, it still processes fewer orders than the two. Also, Snapdeal has a grocery vertical in collaboration with Godrej, and it’s unclear at the moment how the strategic investment will pan out.