Online meat seller Zappfresh Secures INR 30 Crore Funding from Ah! Ventures and HT Media

• ByStartupStory     |    November 24, 2023

Online meat seller Zappfresh announced a successful fundraising round, securing INR 30 crore from a consortium of investors. The investment was led by prominent entities such as Ah! Ventures, HT Media, Unity SFB, and Heifer Impact, signifying a strong show of support from the investor community.

Deepanshu Manchanda, the founder of Zappfresh, expressed gratitude for the backing of investors, emphasizing its instrumental role in launching strategic initiatives. The funds raised will be strategically utilized for acquisitions, expansion plans, and infrastructure upgrades, particularly in both the North and South markets.

Zappfresh, founded in 2015, has positioned itself as a major player in the online fresh meat and seafood segment. The company distinguishes itself by sourcing meat and fish from local farms, processing them at its plants, and customizing pieces before delivering them to customers through its app and website.

The latest injection of funds is set to propel Zappfresh into new product lines, expanding its offering to include a diverse range of poultry, goat meat, seafood, and ready-to-eat items. This move aligns with the company’s vision to diversify its product range and strengthen its market position.

Manchanda highlighted the company’s plans to acquire new firms, a strategic move that aims to further solidify its presence in the market. The acquisition strategy is expected to contribute to Zappfresh’s overall growth and enhance its product portfolio.

In a recent interview, Manchanda shared insights into the company’s performance, revealing that Zappfresh delivers around 4,500 orders daily with an average basket size of INR 600. Notably, the company achieved profitability in the fiscal year ending March 2023, reporting a revenue of INR 70 crore, a significant increase from INR 56 crore in the previous fiscal year, with a profit of INR 3.5 crore.

The fundraising success follows Zappfresh’s strategic acquisition of Dr. Meat for approximately $3 million in July, a move aimed at supporting the company’s growth trajectory.

Despite facing competition from well-funded rivals such as Licious and FreshToHome, Zappfresh has managed to carve a niche for itself in the market. The company’s co-founders currently hold around 40% of the stake, with SIDBI being the largest external stakeholder, holding a 21% stake, according to data from TheKredible.

Zappfresh’s rivals, including Licious and FreshToHome, have experienced significant funding but also substantial losses. Licious reported a 9.6% growth to INR 747.7 crore in FY23 with a loss of INR 500 crore, while FreshToHome posted a revenue of INR 102 crore (GMV of INR 1,100 crore) and a loss of INR 477 crore in FY22.

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