Online home delivery service Snappy Shopper has raised £19.4 million in funding as the company looks to capitalise on increased demand for local home deliveries.
Led by Kelvin Capital, the deal saw funding from a range of new and existing investors, including Maven Capital Partners, Scottish Enterprise, Highland Tech and former Sainsbury’s CEO Justin King.
PayPoint also invested £6.6 million in the Dundee firm. Snappy Shopper recently announced a new commercial partnership with PayPoint, enabling thousands of retailers to implements its home delivery and click and collect services.
As part of the deal, Kelvin Capital’s Frank Skivington will join the board as non-exec director alongside PayPoint chief executive Nick Wiles.
Meanwhile, Highland Tech’s Lord Laidlaw, Justin King and Kelvin Capital member Gordon Blair will join as board advisors.
Following the investment, Snappy Shopper plans to create 400 jobs over the next three years and move to a new headquarters.
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.”
Based in Dundee, Snappy Shopper works with local businesses and retailers to facilitate home deliveries.
Since December 2019, the firm has grown rapidly, expanding its client base from 220 businesses to more than 1,500. The company now boasts more than one million users across the UK.
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Kelvin Capital founder John McNicol 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.”
Nick Wiles, Chief Executive of PayPoint, added: “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.”