ZappFresh Raises ₹30 Crore To Expand And Upgrade Its Meat Delivery Business
ZappFresh, a meat delivery platform, has successfully raised Rs 30 crore, which is roughly $4.3 million. This funding round was co-led by several investors including Ah! Ventures, HT Media, Unity SFB, and Heifer Impact. With this new funding, the total amount raised by ZappFresh has reached nearly $14 million.
Now, you might be wondering, “What will ZappFresh do with this money?” The company plans to use these funds for a few key areas. They aim to acquire new businesses, expand their services in both the northern and southern markets of our country, and upgrade their infrastructure. This means they want to grow their business and improve how they operate.
History of ZappFresh
ZappFresh isn’t a new name in the market. It was founded back in 2015 by Deepanshu Manchanda. The company focuses on selling fresh meat, seafood, and ready-to-cook items.
They have a unique approach where they obtain meat and fish from local farms, process them in their plants, and then customize the pieces as per customer orders. This entire process is managed through their app and website.
Growth of ZappFresh
Currently, ZappFresh is serving in two major cities – Delhi-NCR and Bengaluru. They’ve made their presence known in these metropolitan areas, offering a variety of food items to their customers.
The financial health of ZappFresh seems to be on a positive trajectory. They have shown considerable growth in recent years.
For instance, in the fiscal year that ended in March 2023, they achieved profitability. Their revenue jumped to Rs 70 crore from Rs 56 crore in the previous fiscal year.
Additionally, their profit stood at Rs 3.5 crore in the same period. These numbers indicate that ZappFresh is not only increasing its sales but also managing its expenses well to ensure profitability.
Moreover, ZappFresh has been quite active in the market. They recently acquired another company named Dr. Meat for about $3 million. This acquisition is expected to help ZappFresh grow further.
In comparison to its rivals like Licious and FreshToHome, ZappFresh seems to be in a relatively better financial position. While Licious and FreshToHome are also heavily funded, they have been recording significant losses.
For example, Licious grew by just 9.6% to Rs 747.7 crore in the last fiscal year but incurred a loss of Rs 500 crore. Similarly, FreshToHome reported a revenue of Rs 102 crore but a loss of Rs 477 crore in its last fiscal year.