The company behind delivery platform Snappy Shopper is set to create 400 jobs after a £19.4 million investment.
Snappy Group claimed its Series A funding round, backed by PayPoint, Kelvin Capital and Scottish Enterprise, was “oversubscribed”.
Reports from April suggest the Dundee firm had hoped to raise around £12 million.
It expects to make sales of £132 million this year, with around one million shoppers using its app.
“Demand for the fundraise exceeded our expectations and we are pleased to have attracted such high-profile investors and advisers,” Snappy chief executive Mike Callachan said.
“The proceeds will significantly accelerate our next phase of growth across the UK.”
He added that the platform could “empower” smaller shops against the “threat” of “anonymous dark stores”, which are used for supplies by grocery startups.
By contrast, Snappy delivers goods from local shops, and has signed agreements with the Co-op, Spar and Nisa.
Ex-Sainsbury’s chief executive Justin King, who sits on Snappy’s board, echoed Callachan’s comments.
“Community stores are brilliant distribution centres whose importance has only been magnified during the Covid-19 pandemic,” he said.
“The Snappy Group is ideally placed to provide local shop owners with a cost-effective and professional home delivery service.”
King made headlines earlier this week for investing in fledgling “hard seltzer” business Served Drinks
Snappy delivers from 1540 local shops, up almost sevenfold from December 2019.