Peppertap, Gurgaon based hyperlocal service startup has taken over Bangalore based hyperlocal grocery delivery startup, Jiffstore for an undisclosed amount. Jiffstore’s team will join PepperTap’s Gurgaon and Bengaluru offices. Peppertap aims to use synergies with Jiffstore to build an excellent customer experience.
PepperTap also closed its Series B round of funding; with an additional $4 millon from Innoven Capital, in addition to the $36 million raised recently from SnapDeal, Sequoia India, SAIF Partners, Ru-Net, Beenext & JAFCO Asia. Total fund raise in PepperTap now stands at around $51.2 million.
PepperTap earns more than 90% of its revenue from the commissions it earns from shops. The rest comes from the delivery cost. It charges consumers for orders below a minimum delivery benchmark. Recently, it also started marketing activities for packaged consumer goods companies by means of banner advertisements and exclusive launches.
PepperTap, which was founded by Singh and Milind Sharma in November 2014, will use the fresh funds towards customer acquisition and marketing. However, the company, which in September planned to double its staff to 5,000 and expand operations across 75 cities, now plans to go slow on expansion.
It stopped operations in smaller cities such as Agra and Meerut nearly four months ago after the pilot projects showed no serious traction.
PepperTap has operations in 18 cities and fulfils close to 20,000 orders a day. It claims to have a fulfilment rate of 97-98%. It targets to service 90,000 orders a day by the end of December next year.