PepperTap, a Hyperlocal delivery startup founded in 2013 by Navneet Singh and Milind Sharma shuts down its grocery delivery operations. Peppertap will focus on building a logistics company to compete with startups including Delhivery, Flipkart’s ekart division and go Javas head on, multiple sources told Pixr8.
In March, Bengaluru-based grocery portal BigBasket raised $150 million (about Rs 1,000 crore) in funding led by Dubai’s Abraaj Group to strengthening its express delivery service and expand its reach. Grofers too raised $120 million led by Softbank earlier this year. Grofers too shut down operations in nine cities, including Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam earlier this year.
The company already runs a reverse logistics arm through its parent company Nuvoex Logistics Pvt. Ltd.
“They are shutting down grocery delivery to focus on the logistics business,” said one of the sources who is directly aware of the developments. “The company has substantial cash in the bank to scale that (B2B logistics business).”
The Sequoia Capital-backed company has raised more than $50 million till date in funding. It is also backed by online marketplace Snapdeal as well as venture firms SAIF Partners, Ru Net and Innoven Capital.