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Zappfresh Prepares for IPO, Transitions to Public Limited Company

• ByStartupStory     |    May 15, 2024

Delhi NCR-based meat delivery startup, Zappfresh, has announced its transition from a private limited company to a public limited entity, marking a significant step towards its upcoming initial public offering (IPO). The company, originally named DSM Fresh Foods Private Limited, has officially dropped “Private” from its name, as per the latest filings with the Ministry of Corporate Affairs.

The transformation is spearheaded by co-founder Deepanshu Manchanda, who is steering the company through this crucial phase. Zappfresh is now gearing up to list its equity shares on stock exchanges, an ambition underscored by a recent approval from its Board of Directors to adopt a new set of Articles of Association and amend its Memorandum of Association.

Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, Zappfresh has carved a niche in the delivery of fresh meat from farms directly to consumers, promising a delivery time within 90 minutes. The service is currently active in Delhi-NCR and Bengaluru.

In preparation for its IPO, Zappfresh has proposed to increase its authorised share capital from INR 1.11 Cr to INR 25 Cr and has announced a substantial bonus share issue of 725 equity shares for every 1 equity share held by existing shareholders.

Adding to its strategic moves, Zappfresh has proposed the appointment of Suman Chaudhary, director of Navdeep Marketing, as an Independent Director for a five-year term. Moreover, Manchanda is set to take on the roles of chairman and managing director from May 8, for a period of five years.

This development follows a $4.3 million funding round over six months ago from investors including Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. The funds were earmarked for acquisitions, expansion plans, and infrastructure enhancements. While the company has not yet disclosed its revenue for the fiscal year 2024, it had targeted reaching a revenue of INR 300 Cr by the end of FY24, with INR 70 Cr expected from the Bengaluru market alone.

Zappfresh operates in a competitive online meat delivery market, going head-to-head with other D2C brands like Licious and Fresh2Home. According to a report by RedSeer, this sector is projected to burgeon into an $80-85 billion market by 2024, underscoring the high stakes and significant growth potential for players like Zappfresh.

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