PepperTap a Gurgaon based Hyperlocal delivery startup is closing their grocery delivery operations in the next one month. Navneet Singh and Milind Sharma co-founders of PepperTap started its operations in 2014. By February this year the app was delivering over 20,000 orders a day. In February, the company had shut down its business in larger cities such as Mumbai, Chandigarh, Chennai, Kolkata, Jaipur and Ahmedabad. Due to non-acceptance of the concept in the markets, operations in Meerut and Agra were closed.
The app helps the users to allow to look for unique products including Fruits & Vegetables, grocery and staples, and household goods.
PepperTap had raised more than $50 million in funding till date, which includes 1$ million in seed round, $10 million in series A from SAIF Partners and Sequoia Capital, $36 million from Snapdeal in September 2015, and finally it raised $4 million in December 2015. In December last year The company had also acquired Jiffstore a Bangalore-based hyperlocal grocery marketplace.
Company have claimed to ship about 20k orders a day in December 2015, and by last month it was processing less than 1k orders and by last week it has laid off over 200 employees. Navneet is not present to comment on these details. PepperTap’s parent company Nuvo Logistics has a reverse logistic business with clients like Snapdeal, Paytm and Shopclues, and by March it was planning to spin off its hyperlocal busniess.
Ashish Tulsian founder of Posist said
“Its time that every startup founder should understand that unit economics and business built with first principles will trump any level of funding. Building a business is tough, funding solves only 20% of the problem, 80% still remains and its always hard to solve. Besides, startups should also not make fun of hyper funded startup founders, it takes guts to raise that sort of money and then blow it up, and pivot. Just that funding isn’t the good news you want, its the Hope of good news which you still ned to work hard to deliver,”