ZappFresh, a direct-to-consumer (D2C) meat delivery startup, has successfully completed the acquisition of Dr. Meat, a renowned brand owned by Sukos Foods. This strategic move represents a significant milestone for ZappFresh as it sets its sights on expanding into the lucrative south Indian market.
Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, ZappFresh is a company based in Gurugram. Initially, ZappFresh specialized in delivering meat exclusively within the Delhi-NCR region.
Through this acquisition, the startup’s primary objective is to expand its presence into the Bengaluru market and other new markets within the coming year. Under the terms of the agreement, ZappFresh will utilize Dr. Meat’s established supply chain to cater to the targeted regions.
ZappFresh has set a goal to achieve a revenue of INR 70 crore within a span of 12 months, focusing exclusively on the Bengaluru market. Additionally, the company aims to attain an overall revenue of INR 300 crore by the conclusion of the fiscal year 2023-2024.
The startup’s primary objective is to gain significant traction in the Bengaluru market over the next six months by expanding its presence into new pin codes. By doing so, ZappFresh aspires to solidify its position within the region.
Commenting on the acquisition, Manchanda said, “We have actively sought opportunities for strategic partnerships and acquisitions in recent years. However, Dr. Meat stood out among other D2C contenders due to its strong alignment with ZappFresh’s fundamental principles.”
According to his assertion, the business has consistently generated profits over the past four years and is poised to achieve the desired revenue milestone within a year.
ZappFresh intends to take proactive measures in pursuing new growth opportunities, considering this acquisition as merely the beginning. The company foresees that its expansion plans will be augmented by additional acquisitions, with ongoing discussions underway. ZappFresh aims to capitalize on the supply chain it has meticulously developed from scratch.
Being a direct-to-consumer (D2C) startup, ZappFresh asserts that it has gained substantial backing from prominent investors such as SIDBI VC, Dabur Family Office, LetsVenture, Keiretsu Forum, and a host of well-known angel investors.
The direct-to-consumer (D2C) meat and grocery delivery sector gained rapid prominence during the pandemic-induced lockdowns, swiftly transforming into a highly competitive market.
Within this industry, ZappFresh faces competition from established unicorn player Licious, as well as other notable contenders such as Swiggy Instamart, BigBasket, Blinkit, TenderCuts, and more.
