Maven VCTs back The Snappy Group
The Maven VCTs have invested in The Snappy Group, as part of a £19.4 million Series A funding round, which will enable the tech platform to drive growth and create 400 new jobs.
There remains a large number of convenience stores that currently do not offer a home delivery service which presents a significant market opportunity. Snappy’s affordable tech solutions and trading model connects consumers with their local businesses, in a way that is very different from delivery aggregators, enabling 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.
Snappy works in partnership with existing local businesses embedded enabling retailers retain control over their home delivery service. They are provided with a flexible tech solution which allows customer choice, in-store pricing and special offers, tailored to the needs of each individual neighbourhood. Retailers can increase revenue significantly with average basket spend more than trebling online compared to instore.
Despite the easing of lockdown restrictions, the appetite for shopping locally has not slowed. Snappy has grown from 220 to 1540 business partners since December 2019, and to more than 1 million users across the UK. Over the next 3 years Snappy expects to create 400 new jobs, as it invests in people, technology, partner services and marketing.
Our investment in the Snappy Group represents an excellent opportunity for our VCT investors to back a business that has forged an enviable position in a high-growth market driven by rapidly changing consumer habits. We have been impressed by the management team, the technology it has developed and the solid commercial traction achieved to date. The business has an ambitious strategy for future growth, and we look forward to supporting the Snappy Group in capitalising on these new opportunities.
Martin McLaren, Investment Director at Maven Capital Partners
Demand for the fundraise exceeded our expectations and 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, including investments in new services for our retail and hospitality partners and new hires across the business. Post lockdown the demand for home delivery and the desire to shop locally is greater than ever, but the increasing number of anonymous dark stores is a threat to local businesses and communities, which must not be underestimated. We are well placed to empower local business to offer another great service to their customers, and better compete in this fast-changing retail market.
Mike Callachan, CEO and co-founder of the Snappy Group