Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%

SUMMARY

Zappfresh’s net profit grew 70% to INR 4.7 Cr in FY24 from INR 2.7 Cr in the previous fiscal year

Delhi continued to contribute the highest revenue and accounted for 35.7% of its operating revenue. It was followed by Haryana with 27.96% share in revenue

The D2C meat delivery startup’s IPO comprises a fresh issue of 59.06 Lakh equity shares, with no offer for sale component

Delhi NCR-based online meat delivery startup Zappfresh, which has become the latest tech startup to file a draft red herring prospectus (DRHP) for an IPO on BSE SME, posted a 70% year-on-year (YoY) jump in its net profit to about INR 4.7 Cr in the financial year 2023-24 (FY24).

Zappfresh turned profitable in the previous fiscal year with a net profit of INR 2.7 Cr as against a net loss of INR 2.5 Cr reported in FY22.

The IPO-bound startup’s operating revenue surged more than 60% to INR 90.4 Cr in FY24 from INR 56.3 Cr in FY23. It must be noted that its revenue was almost on a YoY basis in FY23.

Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, Zappfresh is an online fresh meat and ready-to-cook/eat non-veg products retailer. It is a full-stack business where the meat delivery process starts from procuring fresh produce to processing, storage and delivery. 

While Zappfresh’s top line and bottom line improved in FY24, it’s way below the startup’s projections. It earlier said that it would clock an overall revenue of INR 300 Cr by the end of FY24, with Bengaluru alone contributing INR 70 Cr to it. 

As per the startup’s DRHP, its total revenue from Karnataka stood at INR 13.8 Cr in FY24. Zappfresh is operational only in Delhi NCR and Bengaluru.

Delhi continued to contribute the highest revenue and accounted for 35.7% of its operating revenue. It was followed by Haryana with 27.96% share in revenue.

Zappfresh operates in three segments of meat – chicken, mutton, and seafood. While the chicken business contributed INR 51.1 Cr to its revenue in FY24, growing 61.7% YoY, the mutton segment grew 50% YoY to clock INR 18.5 Cr in revenue.

Zappfresh Derives A Majority Of Its Operating Revenue From Chicken Business

The seafood business registered the biggest jump in revenue – over 68% YoY to INR 20.8 Cr during the year under review.

Zooming Into Expenses

Zappfresh’s total expenses increased over 54% to INR 83 Cr in FY24 from INR 53.8 Cr in the previous fiscal, with the cost of materials being the biggest expense driver.

Zappfresh's Revenue Touch INR 90 Cr In FY24; Profit Grows

Cost Of Materials Consumed: The startup’s spending under this head increased over 66% to INR 68.5 Cr during the year under review from INR 41.2 Cr in FY23.

Employee Cost: Zappfresh’s total employee benefit expenses increased to INR 1.4 Cr in FY24 from about 99 Lakh in the year-ago period.

In that, a little over INR 1 Cr was spent towards salaries and wages.

Ad Expenses: The startup spent INR 5.1 Cr towards advertisements in the reported period as against INR 3.2 Cr spent in this bucket a year ago.

Outsource Service Charges: Zappfresh spent INR 3.8 Cr under this head, which increased 46.6% YoY.

Amid a surge in IPOs in the Indian startup ecosystem, Zappfresh has become the latest startup to make the bid to go public. 

Its public issue comprises a fresh issue of 59.06 Lakh equity shares with a face value of INR 10 apiece. No existing shareholders are offloading their stake in the startup through an offer for sale component in the IPO.

The development comes days after Zappfresh acquired Mumbai-based online meat and seafood delivery brand Bonsaro to enter the western region of the country.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%-Inc42 Media
Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%-Inc42 Media
You’re in Good company