Gurgaon-based on-demand grocery delivery startup, PepperTap, has been reported to shut operations in six cities.
According to the company, it will now shut down business in larger cities such as Ahmedabad, Chandigarh, Mumbai, Kolkata, Chennai and Jaipur. The startup had 50 full-time employees and about 400 delivery personnel on a contractual basis in these cities. The company will, however, continue to operate in Delhi, Gurgaon, Hyderabad, Pune, Noida, Bangalore, Ghaziabad and Faridabad.
Earlier in September 2015, PepperTap had rolled back operations in Agra and Meerut due to non-acceptance of the concept in the markets.
Navneet Singh, co-founder and chief executive of PepperTap said, “Even though PepperTap has been able to establish itself as a leading hyperlocal grocery delivery service, given the short to mid-term investment climate outlook, we have decided to focus on depth rather than breadth. We are digging our heels in for the long term. We will focus on building a stellar customer experience by providing additional categories and services that differentiate us from our competition in cities where we continue to operate in. This will help PepperTap conserve capital it raised in the last three to six months and will give a runway of about two more years.”
Started in 2014, PepperTap offers over 5000 unique products across categories including grocery & staples, fruits & vegetables and household goods. It claims to be delivering over 7,000-8,000 orders a day. Its’ parent firm Nuvo Logistics Pvt. Ltd, which also runs a reverse logistics business, posted a profit of INR.87 lakh on revenue of INR 19.5 Cr in 2014-15.
Funding Received By PepperTap
December 2015: PepperTap raised additional $4 Mn from Innoven Capital and closed its Series B round of funding. It also acquired Bangalore-based Jiffstore to better their product offerings and boost customer experience.