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Nippy Groceries

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Nippy is reshaping online & offline grocery retail space with an innovative omni-channel approach.

102%
 - 
Funded 15 Jun 2022
£170,002 target
£177,441 from 150 investors
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Business overview

Location Kingston upon Thames, United Kingdom
Social media
Website trynippy.co.uk
Sectors Food & Beverage Mixed Digital/Non-Digital B2C
Company number 13540598
Incorporation date 30 Jul 2021
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Investment summary

Type Equity
Valuation (pre-money) £2.4M
Equity offered 6.75%
Tax relief

EIS

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Business highlights

  • Launched two stores in Kingston-Upon-Thames and Milton Keynes
  • 6,000+ deliveries done via Kingston site with £20 AOV
  • Available on: Grocemania, UberEats, Deliveroo and more
  • Over £100K+ revenue with £0 spent on ads or discounts*
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Key features

  • Secondary Market
  • Seedrs nominee min. £11.22 +
  • Direct investment min. £15,000.00 +

Idea

Introduction

Nippy is a new type of quick commerce operator, delivering your favourite groceries & food in under 30 minutes, 24/7 at retail price!

Our team has been working within this fast-moving industry since 2016, helping pioneer on-demand grocery deliveries. We are on a mission to build a network of profitable and sustainable "Digital Stores" by utilizing an omnichannel strategy. Removing the need for insane marketing budgets, huge operating losses and allowing us to grow revenues without massive operating cost increases.

This means that each of Nippy's stores sell not only via our own app but also through existing marketplaces like Deliveroo, Grocemania, UberEats, Foodhub, etc.

This allows us to rapidly scale the initial customer base for every new site and avoid the need in the budget for discounts and paid ads when starting.

We have two Digi stores live in Kingston and Milton Keyes and soon will be launching the third one in Wimbledon.

Substantial accomplishments to date

- Launched the first store in Kingston-Upon-Thames back in July 2021 and listed the grocery shop on Deliveroo, Grocemania, UberEats, Foodhub, JustEat

- Developed our own app and a centralised stock control and order management dashboard, which communicates with all partner marketplaces via APIs to avoid substitutes forever.

- Achieved 62 average daily orders by January 2022 with average order value of £20 and £0 spent on discounts or ads

- Achieved 4.7+ ratings on two of our partner marketplaces and earned "Top Eats" award with UberEats

- Two of our top clients reached over 30 orders, with £350+ total order value per client to date
- Launched our "Dirty Vegan" virtual restaurant from the same site, which has been contributing to our business by growing its revenues

Grown the team to:
- 6 people on the ground
- 4 people in management

- Launched the second store in Milton Keyes
- Identified a new site in Wimbledon, where we plan to start accepting "Click and Collect" and "Shop in Store" customers and unlock one more revenue stream
And it is just the beginning of our journey!

Monetisation strategy

Similar to any traditional retailer, we purchase the stock from either wholesaler or directly from brands, and put a markup on the wholesale price.However, the key benefit of our approach is an ability to build the initial customer base without a "set" marketing and ads budget when starting.

KPI indicators:

1) Daily average order quantity = 62

2) Average Order Value (AOV) = £20

4) Paid marketing and discounts budget = £0

4) Customer lifetime value (LTV) and loyalty - several of our top customers already have 30+ orders, and the median spend across the board is £12.45/customer.

Major Costs:

1) Rent - £1550 average per month/site

2) Labour - £6000 per month

3) Re-stock - £2600 on average / month

When we are selling through Deliveroo or UberEats, we pass all of the 14% platform fee on to our customers, while also offering them to download our app so they can shop at retail prices in the future.

*Based on unaudited management accounts.

Use of proceeds

We believe we've found a niche in "Q-commerce", we have fantastic technology and service that our customers love. Supported by a passionate team, and a clear vision of how to scale on a proven model.

Our first store in Kingston has achieved an average annual revenue run rate of £345,000 in the past 5 months. Sales have already started in our second store in Milton Keynes in October 2021, and we have a third digital store lined up in the Wimbledon area which we are incredibly excited about.

We believe this will be an evolution of the whole "Quick Commerce" industry. Instead of selling online only, we are also opening our store for walk-in customers, which will expand our potential addressable market.

The funds raised in this round will go towards the launch of the fourth store in Guildford and driving our marketing for further customer acquisition putting us in a great position for a planned Series A Round.

Any overfunding investment will be put towards the next store launch and expansion of our own label product base.

Key Information

Group Restructure and Founder Interests

The Founders of Nippy Groceries Limited (“Nippy”) are also majority shareholders in Grocemania Limited, a UK entity which has also previously raised on Seedrs (“Grocemania”)

Grocemania is an online marketplace allowing customers to order from local chain and independent grocery stores.

Prior to this campaign, Nippy was spun out from Grocemania, whereby all assets and IP relating to the Nippy brand were transferred to Nippy. The Founders will continue to hold equity in both Grocemania and Nippy.

Askar Bulugenov, co-Founder and CEO in the Company, currently works for the business in a part-time capacity with a 60/40 time split between Nippy and Grocemania respectively.

Seedrs is a shareholder in both Grocemania and Nippy.

S/EIS

The company has applied for Advance Assurance from HMRC confirming eligibility for SEIS tax relief. The campaign will be updated accordingly if this is obtained.

Should the application be successful, the first £150,000 invested in the Nippy campaign will be SEIS eligible. Further investment beyond £150,000 will be eligible for EIS tax relief.

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If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

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Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £2,404,252

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

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Payment options

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Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

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