A Dundee tech firm helping convenience stores and corner shops to cash in on the growth in online grocery sales is to create more than 20 jobs after raising a seven-figure sum to fund its expansion throughout the UK.
Snappy Shopper has raised the seed capital from Kelvin Capital, Mercia, the Scottish Investment Bank and the management team. The funding injection will support its aim to become the UK’s leading online platform for convenience stores and allow it create 21 jobs over the next year.
The tech business brings “convenience stores to consumers’ doors” and can offer deliveries in under 60 minutes in many cases. It enables independent stores and smaller chains to generate additional sales and engage with customers.
Stores already using the platform have reported a “marked” growth in revenue, and the average order value on the platform is £21 compared to an average spend of just £6.50 in store.
Snappy Shopper has been launched by the team behind Scottish web development company MTC whose customers include BrewDog, Umbro, Innis & Gunn, and Macdonald Hotels & Resorts.
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Co-founder and chair Mike Callachan commented: “The platform provides a unique opportunity for convenience store retailers to increase their market share and profits as well as giving detailed insights into customer buying patterns and behaviour.”
Snappy Shopper is Mercia’s fourth investment in recent months in Scotland following on from Gecko, ClinSpec DX and Invizius.
Marcus Henderson, investment director with Mercia, said the investment will allow Snappy Shopper to expand its live sites, continue to innovate and further develop its product and team.
“We are well-placed to work with our partners and support the team in their ambition to make it the UK’s leading retail platform of its type.”
Kerry Sharp, director at the Scottish Investment Bank, said: “Snappy Shopper has channelled years of e-commerce and development experience into the creation of a platform that could completely transform community-based retailers’ interactions with existing and potential customers. We hope our support will help the company tap into the significant market opportunity that exists and grow its business exponentially over the next few years.”
DC Consulting provided corporate finance and fundraising advice to Snappy Shopper. Blackadders provided legal advice to the company, while Davidson Chalmers Stewart advised Kelvin Capital, Burness Paull advised Mercia and CMS acted for the Scottish Investment Bank