Gurugram-based meat delivery platform ZappFresh has raised $4.3 million, propelling strategic acquisitions, expansions, and poultry pursuits to carve a niche in the competitive market. The funding round was co-led by Ah! Ventures, HT Media, Unity SFB, and Heifer Impact.
The capital infusion, which brought the company’s total funding to nearly $14 million, is set to fuel ZappFresh’s strategic initiatives in acquisitions, expansions, and infrastructure upgrades across both the North and South markets.
“This collaboration will help us expand our reach and build more traction in our diverse product portfolio, which includes poultry, goat meat, seafood, and ready-to-eat products. We are excited about the opportunities this partnership will unlock,” said Deepanshu Manchanda, the founder of Zappfresh.
ZappFresh, operational in Delhi-NCR and Bengaluru, plans to leverage the newly acquired funds for strategic acquisitions, aiming to strengthen its position in the market further. Already boasting profitability, the company delivered approximately 4,500 orders daily with an average basket size of INR 600.
ZappFresh has set its sights on enhancing its product range and market presence by launching new lines, including poultry, goat meat, seafood, and ready-to-eat items.
Financial Performance
The funding news follows ZappFresh’s recent fiscal achievements, registering profitability in the fiscal year ending March 2023. The company witnessed an impressive revenue surge from INR 56 crore to INR 70 crore during FY23, with a notable profit of INR 3.5 crore. ZappFresh’s co-founders currently hold around 40 percent of the stake, with SIDBI as the largest external stakeholder, holding a 21 percent stake.
In July, ZappFresh strategically acquired Dr. Meat for approximately $3 million, contributing to its overall growth trajectory. The move aligns with the company’s vision to offer diversified choices and convenience to its customer base.
Market Dynamics and Competition
While ZappFresh claims the title of the country’s only profitable meat delivery platform, it faces competition from well-funded rivals such as Licious and FreshToHome. Licious reported a growth of 9.6 percent to INR 747.7 crore in FY23 with a loss of INR 500 crore, while FreshToHome posted INR 102 crore in revenue (GMV of INR 1,100 crore) and a loss of INR 477 crore in FY22.
“Our partnership with the platform will improve the livelihoods of many smallholder women backyard poultry producers in the country, helping them expand their market reach and generate substantial income,” said Pranjit Talukdar, representative of Heifer Impact.
ZappFresh’s latest funding round signifies a financial milestone and underscores its commitment to capitalizing on the profitable meat delivery market. With a focus on strategic acquisitions, expansions, and diversified product lines, ZappFresh aims to succeed in meeting its customer base’s evolving needs and preferences.
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