Snappy Group, the Scottish technology enterprise supported by the former chief executive of Sainsbury’s, Justin King, achieved unprecedented growth in the previous year.
The company, which holds ownership of Snappy Shopper, an innovative application facilitating grocery orders from independent retailers, including local corner shops and prominent convenience store groups like Spar and Nisa, reported a surge in revenue exceeding 50% for the period up until the end of April.
While the pandemic undeniably accelerated the expansion of online grocers and swift delivery firms, the triumph of Snappy Group suggests that this shopping behavior has transcended temporary circumstances. The organization fulfilled over 5.5 million orders last year, a substantial increase from the previous year’s 3.6 million, facilitated by their extensive network of more than 1,800 merchants.
Snappy Group’s revenue is generated through subscription fees for its services and charges imposed on customers and shoppers per transaction. Its operational costs are notably lower compared to those of competitors, as it avoids the need to store inventory or operate physical stores.
The average basket size for convenience stores utilizing the Snappy Shopper platform stands at £26, a significant contrast to the average in-store basket size of £7.
In addition to Snappy Shopper, the Dundee-based corporation, established in 2017, also offers the Hungrrr app, which provides convenient takeaway and table booking services for pubs and restaurants.
Mike Callachan, the co-founder of Snappy Group alongside Alan Reid and Scott Campbell, expressed his pride in the company’s “consistent year-on-year growth during a challenging period.”
Callachan revealed the group’s aspirations for the upcoming year, which encompass expanding their coverage across the UK beyond convenience stores, conducting a trial run of a branded platform in international markets, and enhancing their e-commerce and marketing tools that form the cornerstone of their offerings to local merchants.
Joining Justin King, other notable investors in the group include Lord Laidlaw’s Highland Tech investment vehicle and Scottish Enterprise, a publicly funded economic development agency, further bolstering confidence in the company’s potential.
According to FoodTech Insights, Justin King, the former CEO of Sainsbury’s, remarked, “The remarkable growth of Snappy Group reflects their innovative approach and unique value proposition in the market.”
Grocery Insights Magazine highlighted in a recent report that the online grocery sector experienced an unprecedented 82% surge in 2020, positioning Snappy Group as a key player.
Tech Digest interviewed Mike Callachan, where he elaborated on the company’s growth trajectory, emphasizing the team’s achievements in a challenging market environment.