D2C Meat Delivery Startup Zappfresh Files DRHP To List On BSE SME

SUMMARY

Zappfresh’s IPO will only consist of a fresh issue of 59.06 Lakh equity shares with a face value of INR 10, with no offer for sale component

Founded by Deepanshu Manchanda and Shruti Gochhwal in 2015, Zappfresh delivers meat in Delhi NCR region through its website and app

Zappfresh plans to use the proceeds from the IPO for funding unidentified acquisitions, meeting marketing and capital expenditure requirements, working capital requirements, among others

Amid the initial public offering (IPO) boom in the Indian equities market, D2C meat delivery startup Zappfresh’s parent, DSM Fresh Foods Ltd, has filed its draft red herring prospectus (DRHP) for listing on the SME platform of BSE, BSE SME.

The startup’s IPO will only consist of a fresh issue of 59.06 Lakh equity shares with a face value of INR 10, with no offer for sale component.

Zappfresh plans to use the proceeds from the IPO for funding unidentified acquisitions. Besides, it would also use the capital for meeting marketing and capital expenditure requirements, working capital requirements, and general corporate purposes.

Founded by Deepanshu Manchanda and Shruti Gochhwal in 2015, Zappfresh delivers meat in Delhi NCR region through its website and app. It claims to procure fresh meat from farms and promises delivery under 90 minutes.

Along with fresh meat, Zappfresh provides ready-to-eat and marinated meals.

The Delhi NCR-based startup, which counts SIDBI VC, Dabur Family Office, LetsVenture and Keiretsu Forum among its backers, has raised more than $10 Mn in funding till date. It competes against the likes of Licious, Fresh2Home, among others.

In May this year, Zappfresh converted into a public entity, doing away with the “Private” label from its name on record “DSM Fresh Foods Private Limited” ahead of its Dalal Street debut.

The development comes just days after Zappfresh acquired Mumbai-based online meat and seafood delivery brand, Bonsaro, for an undisclosed sum.

As per its DRHP, Zappfresh posted a net profit of INR 4.66 Cr in the financial year 2023-24 (FY24), up more than 70% from INR 2.73 Cr in the year-ago period. Revenue from operations also jumped over 60% during the year under review to INR 90.43 Cr from INR 56.28 Cr in FY23.

Zappfresh’s DRHP comes amid a surge in IPO activity in the startup ecosystem, with 10 new-age tech startups, including the likes of Ola Electric, Unicommerce, FirstCry, ixigo, and Menhood, having already made their market debut this year.

Further, the likes of Swiggy, Smartworks, Ecom Express and MobiKwik have also filed draft IPO papers with SEBI for going public.