The Dundee tech firm behind convenience shop delivery app Snappy Shopper plans to create 200 city jobs after a £19.4 million investment.
The Snappy Group plans to move into a new city centre headquarters after an oversubscribed funding round.
Just five years after offering a solution for a Lochee shop, the firm is now valued in excess of £65m.
The app enables customers to get deliveries from convenience stores from as little as 30 minutes.
Its adoption grew rapidly during the pandemic and Snappy Shopper signed deals with SPAR, Nisa and Co-Op.
What is the Snappy Shopper jobs plan?
The three year business plan is for the creation of around 400 jobs, with more than half to be based in Dundee.
The fast-growing tech firm, which already employs 90 staff, has outgrown its unit at City Quay.
Chief executive and co-founder Mike Callachan said he was talking to landlords about city centre sites.
He said: “The investment is all about accelerating our growth and we are going to be investing significantly in people.
“Over the next few years we plan to create 400 new jobs and at least 200 of these roles will be in Dundee.
“We will establish a new Snappy Group head office in the city centre which will be a significant pull for talent.
“I want to make it a special environment to attract people and a place they can collaborate and Dundee is the perfect place to do that.”
The new jobs will cover all the sales and marketing functions as well as tech roles as the platform continues to develop.
Rapid adoption of Snappy Shopper app
Mr Callachan, who is also a director at web design firm mtc, said the company vision was to serve convenience stores in every part of the UK.
Despite the easing of lockdown restrictions, he said the appetite for shopping locally has not slowed.
The chief executive said it could will also be a weapon for shops to fight against dark stores – distribution centres which don’t have a retail element that offer goods delivered quickly.
“Post lockdown the demand for home delivery and the desire to shop locally is greater than ever,” Mr Callachan said.
“The increasing number of anonymous dark stores is a threat to local businesses and communities, which must not be underestimated.”
Snappy reports a 16% increase in gross merchandise volume in May compared to January. The annualised volume for the group is £132m.
The Snappy platform also allows hospitality venues to take orders.
Who are the new investors?
The £19.4m Series A investment round includes a £6.6m strategic investment from PayPoint.
Other investors include Highland Tech, former Sainsbury’s chief executive Justin King, Maven Capital Partners, Kelvin Capital and Scottish Enterprise.
Mercia Asset Management previously provided the company with funds and remains an investor.
Nick Wiles (PayPoint CEO), Lord Laidlaw (Highland Tech) and Frank Skivington (formerly Skyscanner) join the board as non executive directors. Justin King and Gordon Blair (former F1 team director) are board advisers.
“Demand for the fundraise exceeded our expectations,” Mr Callachan added.
“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.”