A group that offers technology that lets consumers order goods for home delivery from local stores expects to create 200 jobs in Dundee after winning backing from big names.
Snappy Group secured £19.4 million growth funding in a round that was backed by former Sainsbury’s chief executive Justin King and the PayPoint payments business.
The company expects to use the funding to help capitalise on booming demand for home delivery services. While demand was fuelled by lockdown restrictions on movement it has remained strong since the toughest have been eased.
The group said its affordable tech solutions enabled 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.
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In addition to the technology offered to retailers through its Snappy Shopper operation, the group also offers an order-handling technology for food and drink businesses under the Hungrrr brand. This can be used by customers in pubs to order drinks to a table.
The group’s technology is being used by 1540 business partners across the UK, ranging from single stores and restaurants to groups. The annualised value of transactions handled is running at around £130m.
Chief executive and co-founder Mike Callachan said demand for the fundraise had exceeded the group’s expectations, adding: “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.”
The group said it expects to create 400 jobs across the UK over the next three years including at least 200 new roles in Dundee, at a new group head office in the city centre. The group employs 90 people currently.
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Mr King invested an undisclosed sum in Snappy Group and has become an adviser to its board. PayPoint invested £6.6m.
The funding round was also supported by Glasgow-based Maven Capital Partners, the Kelvin Capital investment syndicate and by Scottish Enterprise.
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