Gurgaon-based hyper-local grocery delivery service PepperTap has closed the first tranche of a Series-B round of funding, at $36 million (about Rs 239 crore), which was led by Jasper Infotech, the parent company behind online marketplace Snapdeal.com.
New investors Russia’s Ru-net, Japanese private equity firm JAFCO, BeeNext and existing investors Sequoia India and SAIF Partners also participated in the current round.
Nine-month-old PepperTap will use the proceeds from the funding round to expand its presence to 75 cities across India by the end of the current fiscal. It will also invest further in technology and supply-chain capabilities, while also upping its employee strength to more than 5,000 by the end of the year.
Founded in November last year by former e-commerce logistics company Delhivery executives Navneet Singh and Milind Sharma, PepperTap started its operation with only one city – Gurgaon, and now, it is in 17 cities across India and does close to 15,000-17,000 orders a day.
PepperTap, run by Nuvo Logistics Pvt Ltd, is in advanced talks to raise another $20 million, as second tranche of Series-B, from a US-based investor, co-founder Navneet Singh said.
The company has raised three rounds of funding within six months with total funding of around $47.2 million, so far.
“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. Investment by an established player like Snapdeal is a stamp on our asset-light, low burn business model and our execution track record,” said Navneet Singh, co-founder and chief executive of PepperTap.
Peppertap funding is Snapdeal’s latest push into hyperlocal after the company launched Snapdeal Instant in August, a hyperlocal delivery service being piloted in Delhi, Mumbai and Bengaluru.