Hyperlocal startup Peppertap to say goodbye to grocery delivery; to grow its logistics arm
23rd April 2016Category : Start-upsPublished by :Rahul Verma Reading Time : 2 Minute News Sourced : India
The ongoing slump in grocery e-commerce has tumbled down another hyperlocal delivery startup PepperTap. It will cease its operations in the next one month, according to reports published in Economic Times.
The startup will move its full force in capitalizing a logistics company to compete with Delhivery, Flipkart's ekart division and Go Javas.
The company has a reverse logistics arm with its parent company Nuvoex Logistics Pvt. Ltd and will grow by expanding with the opportunities for e commerce delivery. The report claims that, the company has substantial cash in the bank to scale that (B2B logistics business).
The recent development to exit operations could be a result of straight competition from Grofers and Bigbasket, which are expanding and craving with new business ideas.
In downhill response, the startup has failed in its pilot operations in Agra and Meerut after a month-long stint and had laid off delivery men and ceased operations in - Ahmedabad, Chandigarh, Mumbai, Kolkata, Chennai and Jaipur.
Moreover, the company so far has funding from Sequoia Capital, Snapdeal as well as venture firms SAIF Partners, Ru Net and Innoven Capital.
The grocery startup took flight in 2013 by Navneet Singh and Millind Sharma, bundled in 5000 unique products across grocery & staples, fruits & vegetables, and household goods for users.