Gurugram-based meat delivery platform ZappFresh has raised Rs 30 crore (approximately $4.3 million) in a recent funding round co-led by Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. This injection of funds brings ZappFresh’s total raised capital to nearly $14 million.
The company, founded in 2015 by Deepanshu Manchanda, has carved a niche by delivering fresh meat, seafood, and ready-to-cook items through its user-friendly app and website. ZappFresh’s unique approach involves:
- Sourcing meat and fish directly from local farms.
- Processing them at state-of-the-art plants.
- It is tailoring the products to meet the specific preferences of its customers.
Currently operating in Delhi-NCR and Bengaluru, ZappFresh plans to utilize the newly acquired funds for strategic acquisitions, expansion initiatives, and infrastructure upgrades in northern and southern markets, as outlined in a recent press release.
CEO Deepanshu Manchanda shared in a recent interview that the company handles an impressive 4,500 daily orders with an average basket size of Rs 600. Moreover, the fiscal year ending in March 2023 marked a significant milestone for ZappFresh. It achieved profitability, reporting a revenue surge from Rs 56 crore to Rs 70 crore, with a profit of Rs 3.5 crore.
ZappFresh is excited to introduce new product lines tailored to evolving customer preferences. This expansion includes an array of poultry, goat meat, seafood, and ready-to-eat items, providing customers with even more choices and convenience.
In a strategic move earlier this year, ZappFresh acquired Dr. Meat for approximately $3 million, which plans to fuel further growth for the company.
ZappFresh’s success is noteworthy in an industry where rivals like Licious and FreshToHome continue to grapple with substantial losses despite being heavily funded and operating on a larger scale. Licious reported a modest 9.6% growth to Rs 747.7 crore in FY23 but incurred a significant loss of Rs 500 crore. Similarly, FreshToHome posted Rs 102 crore in revenue (GMV of Rs 1,100 crore) in FY22 but reported a substantial loss of Rs 477 crore. As of now, FreshToHome is yet to disclose its FY23 financial figures.
ZappFresh’s ability to achieve profitability while expanding its product offerings showcases its resilience and strategic prowess in a competitive market, positioning it as a formidable player in the meat delivery segment. With the recent funding infusion, ZappFresh plans to scale new heights and further solidify its presence in the dynamic food delivery landscape.
