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