Delhi NCR-based meat delivery startup Zappfresh has made headlines with its recent acquisition of Mumbai-based online meat and seafood delivery brand Bonsaro in an all-cash deal. The financial terms of the transaction were not disclosed.
As part of the acquisition, Zappfresh has taken over Bonsaro’s entire operations and business, including all assets, to enhance its presence in the western market. This move aligns with Zappfresh’s strategic expansion plan, aiming to establish itself as a leading player in the direct-to-consumer (D2C) meat market in western India.
The combined entity is projected to achieve a revenue of ₹160 crore in the financial year 2024-25 (FY25), alongside a significant increase in profit after tax (PAT), according to a company statement.
Deepanshu Manchanda, Founder of Zappfresh, highlighted the importance of this acquisition: “Our acquisition of Bonsaro is a pivotal moment for Zappfresh. By integrating Bonsaro into our portfolio, we are poised to build a pan-India brand that operates in key markets. Mumbai, being a critical market, will contribute significantly to our footprint in the West. Our expansion strategy remains disciplined—we expand one city at a time, ensuring profitability without compromising our bottom line. We only venture into new markets once we achieve break-even.”
This acquisition marks Zappfresh’s second major deal to date, following its purchase of Sukos Foods’ Dr Meat last year to broaden its reach in the southern Indian market. The company is also eyeing a public listing, having converted into a public entity earlier this year. Zappfresh aims to become the first D2C startup in the meat delivery segment to be listed on the stock exchanges.
In a competitive landscape that includes players like Licious, Fresh2Home, and TenderCuts in the D2C meat delivery sector, and Swiggy Instamart, Big Basket, and Blinkit in quick commerce and grocery segments, Zappfresh is positioning itself for growth. The startup’s recent funding round in November raised INR 30 crore ($4.3 million) from investors such as Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. These funds are being allocated towards acquisitions, expansion, and infrastructure upgrades in northern and southern India.
Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, Zappfresh claims to deliver meat to customers within 90 minutes of order placement. The company is currently operational in Delhi-NCR and Bengaluru and is backed by investors including SIDBI VC, Dabur Family Office, LetsVenture, and Keiretsu Forum.
While Zappfresh has yet to disclose its overall revenue for FY24, it previously aimed for a consolidated revenue of INR 300 crore by the end of FY24, with a target of INR 70 crore from Bengaluru alone. The D2C fresh meat market is currently experiencing a slowdown, prompting companies to diversify their offerings. Zappfresh’s competitors, such as Licious, have announced plans to open physical stores, while Fipola has shut down and TenderCuts was sold to Delhi-based Good To Go.
Despite the challenges, Zappfresh stands out as one of the few profitable startups in the online D2C meat segment, with a reported profit of INR 3.5 crore and revenue of ₹70 crore for FY23.
