ZappFresh, the meat delivery platform, has secured INR 30 crore (about $4.3 million) in a funding round co-led by Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. With this latest funding, the Gurugram-based company has now raised a total of almost $14 million.
As stated in a press release, the proceeds will be directed towards acquisitions, expansions, and infrastructure upgrades in both the northern and southern markets, according to ZappFresh.
Established in 2015 by Deepanshu Manchanda, ZappFresh specializes in the sale of fresh meat, seafood, and ready-to-cook items through its app and website. The company sources its meat and fish from local farms, processes them at dedicated plants, and tailors the pieces to customer preferences before delivering them.
Presently, it operates in the Delhi-NCR and Bengaluru regions.
ZappFresh plans to introduce new product lines, aligning with the changing needs and preferences of customers to provide increased choices and convenience. The expanded offerings will encompass a diverse range, including poultry, goat meat, seafood, and ready-to-eat items, as outlined by ZappFresh.
According to Deepanshu Manchanda, the founder and chief executive of ZappFresh, the company completes approximately 4,500 orders each day, with an average basket size amounting to INR 600.
ZappFresh achieved profitability for the fiscal year ending in March 2023 (FY23), with its revenue increasing from INR 56 crore in the preceding fiscal year to INR 70 crore in FY23. The company reported a profit of INR 3.5 crore in FY23.
Read More: ZappFresh outperforms D2C meat delivery rivals with profitable growth in FY23
In July, ZappFresh successfully acquired Dr. Meat for approximately $3 million, marking a strategic investment poised to foster the company’s expansion.
Read More: ZappFresh bolsters growth strategy with acquisition of Dr. Meat, sets sights on Bengaluru market
As per information from TheKredible, a data tracking and startup intelligence platform, the co-founders of ZappFresh possess approximately 40% of the stake, with SIDBI emerging as the primary external stakeholder holding a 21% stake.
ZappFresh contends with rivals such as Licious and FreshToHome, both of which have secured substantial funding and operate on a larger scale. Despite their extensive operations, these competitors have experienced significant financial losses. In FY23, Licious reported a modest 9.6% growth, achieving INR 747.7 crore in revenue but incurring a substantial INR 500 crore loss. Similarly, FreshToHome disclosed INR 102 crore in revenue (GMV of INR 1,100 crore) for FY22, accompanied by a significant INR 477 crore loss. As of now, FreshToHome has yet to release its financial numbers for FY23.