PepperTap acquires Jiffstore

The Hyperlocal Delivery service provider PepperTap (Nuvo Logistics Pvt. Ltd) has acquired smaller delivery start-up Jiffstore for an undisclosed amount through cash and stock. Nuvo Logistics, which also runs a reverse logistics business said that it plans to spin off the fast growing Hyperlocal business into a new entity by February-March. Reverse Logistics is the process of handling returns or goods rejected by customers.

Nuvo works with clients such as Snapdeal, Paytm and Shopclues. Nuvo fulfills almost 10,000-12,000 orders a day and is operational across 30 cities. With this move, the company is trying to avoid passing on the valuation of the reverse logistics a profitable entity to the investors who are putting in money specifically for the Hyperlocal business. The reverse logistics business currently makes Rs. 4 Crore annual profit.

PepperTap acquisition of Jiffstore is largely to get the company team and expand its presence in Bengaluru, where Jiffstore has been operating for more than two years. Jiffstore has been operating for more than two years. Jiffstore employs close to 40 people, who are slated to join PepperTap Gurgaon and Bengaluru offices. Jiffstore had last raised an undisclosed amount from Unitus Seed Fund and Times Internet Ltd. in June.

PepperTap earns more than 90% of its revenue from the commissions it earns from shops. The rests comes from the delivery cost. It charges consumers for orders below a minimum delivery benchmark. Recently, it also started marketing activities for packaged consumer goods companies by means of banner advertisements and exclusive launches.