PepperTap was founded in 2014 in Gurgaon, India, by Milind Sharma and Navneet Singh. The two founders shared the same goal: to simplify grocery shopping in India. The only way to achieve that was to abandon the traditional approach and modernize it using the internet.
What was PepperTap?
PepperTap was a grocery-specific e-commerce and aggregation business. When a user requests something from a local grocery store, PepperTap will gather the best prices and deliver it to their door. There would be no more haggling, no more tainted goods, and no more limited selection.
But, how did PepperTap operate?
PepperTap’s only responsibility was to take consumer orders and deliver the merchandise within two hours. The business plan for PepperTap was pretty simple and uncomplicated.
They were hyper-local and their logistics plan separated cities into zones. Each zone had a few retail stores that supplied PepperTap with its goods.
Customers could choose from a wide range of items at reduced costs with no delivery fees. Additionally, for shops, PepperTap’s technology offered the chance to connect with a larger customer base.
On every order they bring to the retailer, PepperTap would then receive a 20% commission
So, how was PepperTap received?
Four funding rounds were completed by PepperTap: a seed round, an April 2015 Series A round, and two December 2015 Series B rounds.
The company raised a whopping USD 51.2 million throughout these four stages. In the early stages, investors often proceed cautiously, but because PepperTap’s concept seemed so promising, they gambled heavily.
The company became affiliated with well-known figures in the startup funding community. Some of the investors who were involved with PepperTap through its investment rounds include Sequoia Capital, SAIF Partners, JAFCO Japan, and Snapdeal.
But, what happened to PepperTap?
PepperTap announced in April 2016 that it would permanently close its doors. They began cutting back on cities after a few months and also saw a few significant rounds of layoffs. Many people were surprised by this, but industry professionals had compelling explanations for why this abrupt shutdown occurred.
So, what do we learn?
The company’s founders wanted to compete with Grofers and BigBasket in the supermarket delivery market. In 2016, PepperTap began to fire staff as the chaos reached a boiling point following intense investor pressure.
Lessons
1-Always consider creating an MVP first when developing a product. Launch a beta version of the product, gather user input, then refine and expand upon it.
2-You can only get two of these three things perfect at any given time: fast, good, or inexpensive. A quick-made product of high quality won’t be inexpensive, and vice versa for a quick-made product of low quality.
3-In addition to learning about startups, you must UNLEARN all the myths propagated by the media.
4-Not every startup has to become a unicorn. Something that can provide you with the way of life and happiness you want.
