Meat delivery platform ZappFresh has raised Rs 30 crore (approximately $4.3 million) in a round co-led by Ah! Ventures, HT Media, Unity SFB and Heifer Impact. This takes the total funds raised by the Gurugram-based company to nearly $14 million.
The proceeds will be utilised for acquisitions, expansions and infrastructure upgrades in both the north and south markets, ZappFresh stated in a press release.
Founded in 2015 by Deepanshu Manchanda, ZappFresh sells fresh meat, seafood, and ready-to-cook items through its app and website. The company obtains its meat and fish from local farms, processes them at plants and customises pieces before delivering them to the customers.
Currently, it is operational in Delhi-NCR and Bengaluru.
According to ZappFresh, it is set to launch new product lines that will cater to the evolving needs and preferences of the customers, offering them more choices and convenience. It will include a variety of poultry, goat meat, seafood, and ready-to-eat items.
In a recent interview with Entrackr, ZappFresh founder and chief executive Deepanshu Manchanda said that the firm delivers around 4,500 orders on a daily basis with an average basket size of Rs 600.
ZappFresh also registered profitability in the fiscal year ending in March 2023 or FY23. The firm’s revenue jumped to Rs 70 crore in FY23 from Rs 56 crore in the previous fiscal year. The company’s profit stood at Rs 3.5 crore in FY23.
In July, ZappFresh acquired Dr. Meat for about $3 million and the acquisition will help in growth.
According to the data tracking and startup intelligence platform TheKredible, ZappFresh’s co-founders hold around 40% of the stake while SIDBI is the largest external stakeholder with 21% stake.
ZappFresh rivals including Licious and FreshToHome are hyper funded and have bigger scale. However, they have been making huge losses. Licious reported only 9.6% growth to Rs 747.7 crore in FY23 with Rs 500 crore loss whereas FreshToHome posted Rs 102 crore revenue (GMV of Rs 1,100 crore) and Rs 477 crore loss in FY22. The firm is yet to file its FY23 numbers.