Snappy Group is behind the Snappy Shopper app and website – launched in Dundee in late 2017 – that allows consumers to order groceries from their local convenience store and have them delivered in as little as 30 minutes. It also owns Hungrrr, an online order offering aimed at the hospitality sector, including restaurants, hotels and sports stadia.
The firm has raised £19.4m in a funding round, with a £6.6m strategic investment from PayPoint as well as investments from Highland Tech, former Sainsbury’s boss Justin King, Maven Capital Partners, Kelvin Capital and Scottish Enterprise. Mercia Asset Management previously provided the company with funds and remains an investor.
Over the next three years, Snappy expects to create 400 jobs, as it invests in people, technology, partner services and marketing. Currently, the group has some 90 employees.
Nick Wiles (PayPoint chief executive), Lord Laidlaw (Highland Tech) and Frank Skivington (formerly Skyscanner) join the company’s board as non-executive directors with ex-Sainsbury’s chief executive King and Gordon Blair (former F1 team director) becoming board advisers.
Snappy has grown from 220 to 1,540 business partners since December 2019, and to more than one million users across the UK. The company aims to continue on its growth trajectory over the course of a new three-year plan.
Mike Callachan, chief executive and co-founder of Snappy Group, said: “Demand for the fundraise exceeded our expectations and we are pleased to have attracted such high-profile investors and advisers.
“The proceeds will significantly accelerate our next phase of growth across the UK, including investments in new services for our retail and hospitality partners and new hires across the business.
“Post lockdown the demand for home delivery and the desire to shop locally is greater than ever, but the increasing number of anonymous dark stores is a threat to local businesses and communities, which must not be underestimated.
“We are well placed to empower local business to offer another great service to their customers, and better compete in this fast-changing retail market.”
Lord Laidlaw, chairman of Highland Tech, said: “The Snappy Group is one of the most exciting Scottish tech companies and we are hugely impressed with its trajectory so far. We are delighted to be part of the success story going forward.”
John McNicol, founder, Kelvin Capital, said: “Having supported Snappy from its inception through our network of connections and fundraising, we are delighted with the exceptional performance to date. It is and always has been a very exciting tech proposition and the investing partners joining us on this journey are testament to the ambition of the team.”
King, investor and advisor to the board, added: “The Snappy Group is ideally placed to provide local shop owners with a cost-effective and professional home delivery service.
“Our focus on community stores and local businesses is a key differentiator, driven by local customers and tailored ranges. Community stores are brilliant distribution centres whose importance has only been magnified during the Covid-19 pandemic.”
Source: The Scotsman