Zappfresh FY25: Profit Zooms 94% To INR 9 Cr, Top Line Jumps 45%

D2C meat delivery company Zappfresh continued its profitability streak in the run up to filing its red herring prospectus (RHP). In the fiscal year FY25, Zappfresh’s net profit soared 94% to INR 9.1 Cr from INR 4.7 Cr PAT registered in the previous fiscal year. 

Zappfresh’s profits saw a sharp surge on the back of its operating revenue crossing the INR 100 Cr milestone in the fiscal year. The company reported revenue of INR 130.7 Cr in FY25, marking a nearly 45% increase from INR 90.4 Cr in FY24. Over the past two fiscal years, Zappfresh’s top line has more than doubled, recording a 232% jump from INR 56.3 Cr in FY23.

Including an other income of INR 74.1 Lakh, Zappfresh’s total revenue for the fiscal year stood at INR 131.5 Cr. 

Founded by Deepanshu Manchanda in 2015, Zappfresh claims to procure fresh meat from farms and promises delivery under 90 minutes. The company is looking to raise over INR 50 Cr from its BSE SME IPO, which will consist solely of a fresh issue of up to 59.06 Lakh shares.

After setting up its B2C vertical, Zappfresh entered the B2B segment in FY24. After raking in a revenue of INR 4.9 Cr in its first fiscal year of operations, the B2B arm’s revenue grew multifold to INR 36.7 Cr in FY25. Meanwhile, its B2C segment registered a 10% YoY growth in the fiscal to INR 94.1 Cr. 

Besides expanding its business verticals, the Delhi-based company has also expanded into other Indian territories over the past two years. This expansion bore in some fruits for the meat-delivery company in FY25. 

The state of Karnataka brought in the most sales for the company, with revenue from the region zooming 304% YoY to INR 55.7 Cr. The company entered Bengaluru in July 2023 following the acquisition of Dr. Meat.

It also acquired Mumbai-based Bonsaro to enter the state of Maharashtra in July 2024. In the first fiscal year of its presence in the state, Zappfresh registered a revenue of INR 10.2 Cr.

Meanwhile, it saw a degrowth in its Delhi business in the fiscal. Revenue from the capital region shrunk 22% YoY to INR 25.3 Cr in FY25. Similarly, its revenue from Haryana decreased by 23% YoY to INR 19.5 Cr. UP saw a marginal 5% YoY uptick in sales to cross the INR 20 Cr mark in FY25. 

From a product lens, a large chunk of the company’s business comes from chicken deliveries, which commanded about 55% of Zappfresh’s sales in FY25. While sea food sales contributed INR 31.1 Cr to the company’s top line, mutton delivery brought in the remaining INR 27.5 Cr in the fiscal year. 

Where Did Zappfresh Spend? 

Its total expenses surged 43.4% to INR 119.8 Cr in FY25 from INR 83.5 Cr in the previous fiscal, with the cost of materials weighing in 66.5% of the total expenses. 

Cost Of Materials Consumed: Zappfresh’s expenditure under this head increased 27.5% to INR 87.4 Cr during the year under review from INR 68.5 Cr in FY24.

Employee Cost: Zappfresh’s total employee benefit expenses zoomed about 4X YoY to INR 6.9 Cr in FY25.

Ad Expenses: The startup spent INR 6.7 Cr towards advertisements in the fiscal, up 31.3% against INR 5.1 Cr spent in this bucket a year ago.

Outsource Service Charges and Delivery Charges: The spent under both the heads stood at INR 5.9 Cr and 5.7 Cr in the given fiscal year.