Completes £19.4m fundraise with strategic investment from PayPoint
Tech platform’s fundraise will drive growth and create 400 new jobs
- £19.4m raised in oversubscribed Series A fundraise
- Will enable creation of 400 new jobs
- Empower local convenience stores to compete effectively against dark stores • Help drive the recovery of hospitality venues post lockdown
- Continue on its exceptional growth trajectory by partnering with thousands of convenience and hospitality businesses
- Nick Wiles (PayPoint CEO), Lord Laidlaw (Highland Tech) and Frank Skivington (formerly Skyscanner) join the Board as NEDs with Justin King (former Sainsbury’s CEO) and Gordon Blair (former F1 team director) as Board advisers
The Snappy Group, the technology platform that connects consumers with their local businesses, in a way that is very different from delivery aggregators and dark store operators, announces that it has raised £19.4 million in its Series A round, with a £6.6m strategic investment from PayPoint as well as investments from Highland Tech, Justin King, Maven Capital Partners, Kelvin Capital and Scottish Enterprise. Mercia Asset Management previously provided the Company with funds and remains an investor.
Creation of 400 new jobs
Over the next 3 years Snappy expects to create 400 new jobs, as it invests in people, technology, partner services and marketing. The Company will be looking for new recruits in all areas of the business. Currently Snappy has 90 employees.
Empower local convenience stores to compete effectively against dark stores Local businesses and communities are at the heart of the Company. Consumer demand for local home delivery has risen significantly and community retailers are eager to respond to those needs, yet many do not have the technology to provide that service. Snappy’s affordable tech solutions and trading model enables local retailers to compete effectively in the fast-evolving on-demand convenience market, at a time when the importance of local shops has never been felt more keenly.
Despite the easing of lockdown restrictions, the appetite for shopping locally has not slowed, with Snappy reporting a 16% increase in total Gross Merchandise Volume in the past 4 weeks to 21st May vs the same 4 weeks in January. Annualised Gross Merchandise Volume for the group (GMV) is £132m.
Help drive the recovery of hospitality venues post lockdown
During the pandemic the hospitality sector has suffered greatly and has had to further develop its customer service offering for the long-term. Snappy’s bespoke technology solutions enables venues to take online orders, whether for drinks to a table in a pub, breakfast to a hotel room or food delivered at a major sporting event.
Accelerate growth plans by partnering with thousands of convenience and hospitality businesses Businesses across the UK need cost-effective digital solutions which enable them to maintain their value proposition whilst servicing their local communities, making Snappy’s bespoke offering highly relevant.
Snappy has grown from 220 to 1540 business partners since December 2019, and to more than 1 million users across the UK. The Company aims to continue on its impressive growth trajectory over the course of a new 3-year plan.
Snappy’s tailor-made tech solutions present widespread application opportunities within the hospitality and convenience sectors. There remains a large number of convenience stores that currently do not offer a home delivery service which presents a significant market opportunity. Snappy’s recently announced commercial partnership with PayPoint alone, enables thousands of retailers to implement its home delivery and click and collect solutions.
Snappy works in partnership with existing local businesses embedded in their communities. With the Snappy model, retailers retain control over their home delivery service. They are provided with a flexible tech solution which enables customer choice, in-store pricing and special offers, tailored to the needs of each individual neighbourhood. Retailers can increase revenue significantly with average basket spend more than trebling online compared to instore.
Dark store operators compete with local neighbourhood retailers for space and customers whilst delivery aggregators charge significantly higher commission rates to cover infrastructure costs. Snappy’s model is much more in tune with the need for local businesses to maintain their value proposition whilst trading profitably online. These businesses are being empowered by Snappy to cater exactly for what their communities need.
Mike Callachan, CEO and co-founder of the 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.”
Nick Wiles, Chief Executive of PayPoint, said:
“We’re delighted to be investing into the Snappy Shopper business, building on the partnership that we announced recently to integrate their home delivery and click and collect technology with our own. This investment will enable PayPoint and our network of convenience retailer partners to remain at the forefront of retail and consumer trends.”
Lord Laidlaw, Chairman of Highland Tech, commented:
“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.”
Justin 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.”
Martin McLaren, Investment Director at Maven Capital Partners, said:
“Our investment in the Snappy Group represents an excellent opportunity for our VCT investors to back a business that has forged an enviable position in a high-growth market driven by rapidly changing consumer habits. We have been impressed by the management team, the technology it has developed and the solid commercial traction achieved to date. The business has an ambitious strategy for future growth, and we look forward to supporting the Snappy Group in capitalising on these new opportunities.”
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.”
TB Cardew [email protected]
Tom Allison 07789 998020
Nadja Vetter 07941 340 436
Olivia Rosser 07552 864 250
Notes to Editors:
About the Snappy Group
The Snappy Group is formed of two businesses, Snappy Shopper Ltd and Hungrrr Ltd, operating in the growing UK convenience grocery sector and the hospitality sector respectively.
Launched in Dundee in December 2017, Snappy Shopper is a technology solution provider that connects communities with their local businesses. Via its app and website consumers can order groceries from their local convenience store and have them delivered by the store’s own drivers to their homes in as little as 30 minutes. No longer solely reliant on footfall, this allows retailers to extend their customer base and service, as well as compete in this fast-growing home delivery market. This not only caters to the trend for top up shopping but also an increasing desire by consumers to access and support local businesses. Retailers can increase revenues significantly with average basket spend more than trebling online, while maintaining their in-store pricing. The Company currently serves retailers from most major players and has partnership agreements with several regional Co-op’s, Nisa and SPAR.
Hungrrr, launched in 2016, offers the hospitality sector, including restaurants, hotels and stadia, affordable solutions to take online orders, whether that is ordering drinks to a table in a pub, breakfast to a hotel room or pre-ordering food at a major sporting event. The platform’s white label functionality and branding can be tailored to each client which has proven attractive to businesses such as Hilton and
The Group has 1540 business partners today with more than 1 million users across England, Scotland, Wales and Northern Ireland. Annualised Gross Merchandise Volume (GMV) is £132m.