Zappfresh to acquire majority stake in Avyom Foodtech

Direct-to-consumer meat delivery and processed foods company Zappfresh has approved the acquisition of a 51% stake in Avyom Foodtech Pvt Ltd through a Rs 7.5 crore private placement, according to a board resolution. 

The completion of the transaction is expected within the next 3–9 months. 

The acquisition will give Zappfresh access to the ready-to-cook (RTC) and ready-to-eat (RTE) food solutions segment, expanding its product portfolio beyond fresh meat and seafood. The capital infusion into the proposed subsidiary will be deployed in phases in accordance with a business transfer agreement. 

Founded in 2022 by Deepanshu Manchanda and Priya Aggarwal, Avyom Foodtech is engaged in the production of frozen and ambient food items, snacks, gravies, sauces, and other allied preparations. 

As part of the deal, Avyom has entered into a binding agreement to acquire the food processing business of Ambrozia Frozen Foods via a slump sale. 

The move adds to Zappfresh’s acquisition strategy; the company previously acquired Mumbai-based meat and seafood delivery brand Bonsaro and the Dr Meat brand operated by Sukos Foods as part of its growth and diversification efforts. 

Zappfresh operates in the Delhi-NCR and Bengaluru markets and recently listed on the BSE SME exchange through an IPO. The board has also revised its IPO capital utilisation plan to allocate a larger share of proceeds toward acquisitions to support expansion.