PepperTap, the Gurgaon-based hyperlocal grocery service, has raised $36 million in Series B funding led by Snapdeal and existing investors Sequoia India and SAIF Partners, with participation from new investors Ru-net, JAFCO, and BeeNext. According to the press statement, the company is in advanced talks to raise another $20 million from other investors, expected to close in the next few weeks. Today’s funding take’s the company’s total funding to $47.2 million.

The funding will help PepperTap make use of Snapdeal’s experience to develop its stores’ capabilities and grow sales. It will also be used for geographical expansion to 75 cities by the end of the current fiscal year, invest in technology and supply chain, as well in hiring (over 5,000 by year end overall). PepperTap claims that its GMV run rate of $1 million at the start of fiscal 2015-16, is set to hit over $250 million at the end of the fiscal.

Note that last month, Snapdeal itself raised $500 million in funding from Foxconn, Alibaba and existing investor Softbank, with participation from other existing investors Temasek, BlackRock, Myriad and PremjiInvest.

In April this year, the grocery startup raised Series A funding worth $10 million from SAIF Partners and Sequoia Capital. At that time, the company said that it would use the funds for expansion to more cities including Bangalore, Pune, Mumbai and Hyderabad by the end of this year. In February, it raised seed funding worth $1.2 million from Sequoia Capital, for expansion across Delhi NCR, scale up operations, build a team of over 100 employees across all verticals by the end of the year and marketing.

Founded in November 2014, by Milind Sharma and Navneet Singh, PepperTap partners with local grocery stores to take their inventory online. It allows users to buy grocery, fruits, vegetables, beauty and healthcare items, beverages, dairy products and kitchen utilities through its Android and iOS apps. It claims to have 15,000 products across categories, with operations in 17 cities in India and 2,500 employees. It also claims to generate about 20,000 transactions daily.

The online grocery delivery industry as well as funding in it has been heating up for a while now:

– Last month, Bangalore-based online grocery store BigBasket raised $50 million in a round of funding led by Bessemer Venture Partners at a $400 million valuation.

– ANI Technologies, which operates the online cab booking service Ola, launched a standalone Android app for hyperlocal groceries delivery called Ola Store. The service debuted in Bangalore and at launch, claimed to list over 12,000 products in 13 categories.

– Last month, Delhi based GoodToGo launched a 24 hour online grocery delivery store called GoodToGo Store with plans of expanding to other metros and Tier II cities. The store claimed to have over 8,000 products listed on its platform.

– In May, local search listing platform AskMe acquired the online grocery marketplace for and undisclosed amount.

– In April, Grofers raised $35 million from Tiger Global and Sequoia Capital. Less than two months ago, Grofers had raised series A funding of $10 million led by Tiger Global Management and returning investor Sequoia Capital. The company also acquired mobile grocery My Green Box for an undisclosed sum.

– In the same month, Godrej’s Nature’s Basket tied up with Amazon to deliver the former’s products via Amazon. It acquired Mumbai-based online grocery store in February this year, which was being integrated into Nature’s Basket’s online business in March.

– Same month, online grocery delivery portal ZopNow raised $10 million in a round of funding led by Dragoneer Investment Group, with participation from existing investors Accel Partners, Times Internet and Qualcomm Ventures.

– Amazon launched an express delivery platform called KiranaNow to make everyday consumer products available to its users in Bangalore. Amazon will partner with local kirana (grocery) stores to offer this service. The service was in a pilot stage in Bangalore and Amazon is likely to launch it in other cities in the future.

– In February, Mumbai-based startup incubation platform AntFarm was to be merged with Meals on Wheels with its yet-to-be-launched grocery and essential products ordering platform Scootsy, in February.

– In January, Mumbai based online grocery store LocalBanya secured an undisclosed amount in Series A funding from a real estate development group Karmvir Avant Group. The platform then expanded to Hyderabad earlier this month, after launching operations in Pune in February. In May, the company introduced 2 hour deliveries called InstaBanya in Hyderabad.

– Hyperlocal fruit and veggies e-tailer FreshWorld secured an undisclosed amount of investment from Infosys co-founder Kris Gopalakrishnan. The funds would be used to scale FreshWorld’s retail network, upgrade its e-carts and technology.

– SRS Group forayed into e-commerce with the launch of its grocery vertical website, in January. It then catered to users in Gurgaon, Noida and Faridabad.

Image Credit: Flickr user Janine