Gurgaon-based on-demand grocery delivery startup PepperTap is shutting down its grocery delivery app by the end of this month. Confirming the development, CEO, Navneet Singh stated that the company is pivoting to a full stack ecommerce logistics company.

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The startup will instead pivot and focus on building a logistics company to compete with startups including Delhivery, Flipkart’s ekart division and go Javas head on, multiple sources told ET.

PepperTap had raised over $51 million in risk capital from blue chip investors including Sequoia Capital, SAIF Partners and e-commerce major Snapdeal.

The move to shut down grocery delivery operations could be a prelude to PepperTap shuttering the consumer business bowing to pressure from rivals including Grofers and Bigbasket, which have raised substantial funding.

In February, PepperTap had shut operations in six cities – Ahmedabad, Chandigarh, Mumbai, Kolkata, Chennai and Jaipur.

Started in 2014 by Navneet Singh and Millind Sharma, PepperTap app use to allow users to look into more than 5000 unique products across categories including grocery & staples, fruits & vegetables and household goods. As of February this year, it was delivering over 20K orders a day.

The company had also acquired Bangalore-based hyperlocal grocery marketplace Jiffstore in December last year.

Nuvo Logistics, which controls PepperTap, already has a reverse logistics business and the company had plans to spin off the hyperlocal business into a new entity by March, co-founder Navneet Singh had said in an interview in December.

The firm works with clients such as Snapdeal, Paytm and Shopclues. Nuvo fulfils almost 10,000-12,000 orders a day and is operational across 30 cities

In September, Gurgaon-based PepperTap had rolled back operations in smaller towns such as Agra and Meerut after a month-long pilot failed to take off.

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Sangeeta Ghosh

Sangeeta is an engineering graduate and is passionate about painting and music. She is always blooming with new ideas and is a real go to person when you are searching for one. Exploring good dining places across the city is her favourite off-field indulgence. At KnowStartup, she is an integral part of the editorial team.

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