Online marketplace Snapdeal on Tuesday picked up a minority stake in grocery delivery services firm PepperTap in a $36-million funding round.
The Series B funding round was led by Snapdeal, along with existing investors Sequoia India and SAIF Partners, the company said. It also picked up stakes in digital financial services platform RupeePower and logistics venture GoJavas. The funding also saw participation from new investors such as Ru-net, JAFCO and BeeNext.
Additionally, PepperTap is in advanced talks to expand this round by another $20 million from other financial investors, a move that is expected to happen in the next few weeks, the companies said.
“We look forward to working closely with PepperTap to make them successful, leveraging the capabilities we have built in Snapdeal’s ecosystem,” said Kunal Bahl, co-founder and Chief Executive Officer of Snapdeal.
With the infusion of fresh funds, PepperTap plans to expand its presence to 75 cities nationwide by the end of the current fiscal year, from 18 cities right now.
The company also plans to invest in strengthening its technology and supply chain capabilities. PepperTap expects to have more than 5,000 employees by the year-end.
“From less than $1 million gross merchandise value (GMV) run-rate at the start of fiscal 2015-16, we are on track to end the year with a GMV run-rate of over $250 million.
“The 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 CEO of PepperTap.
Snapdeal has been acquiring stakes in various companies to spread its presence in each category, to take on competitors such as Flipkart and Amazon.