PepperTap was processing less than 1,000 orders since last month and had laid off over 200 employees last week.
Gurgaon: PepperTap, on-demand grocery web portal is shutting down its operations. The Gurgaon-based (now Gurugram) company will roll back its consumer centric grocery app by end of this month. Navneet Singh, CEO of PepperTap confirmed the news earlier in the day.
Recently PepperTap shutdown in 6 major cities and also laid off 400 employees.
Snapdeal-backed hyperlocal delivery start-up PepperTap struggle with a funding slowdown.
Nuvo Logistics, which controls PepperTap.
Prior to PepperTap, Localbanya and Townrush wound up their operations as they failed to raise risk capital and build sustainable business. Biggies like Paytm and Flipkart also launched on-demand grocery verticals but have pulled the plug on their operations soon.
One of the sources claimed that PepperTap was processing less than 1,000 orders since last month and had laid off over 200 employees last week. The company claimed to ship about 20,000 orders each day in December 2015.
Launched in November 2014 by Navneet and Millind Sharma, PepperTap had previously closed operations in six cities including Mumbai, Kolkata and Chennai. Softbank-backed Grofers also backed out from nine cities in January this year to conserve cash and keep tab on burn rate.
PepperTap had secured capital across four rounds. Besides a $1-million seed round, it raised $10 million Series A from Sequoia Capital and SAIF Partners. In September last year it raised $36 million from Snapdeal and others while the final $4 million came in December last year. PepperTap also acquired struggling hyperlocal grocery marketplace – Jiffstore.
The firm works with clients such as Snapdeal, Paytm and Shopclues. Nuvo fulfils almost 10,000-12,000 orders a day and was operational across 30 cities.