Zappfresh Raises INR 16.8 Cr From Anchor Investors Ahead Of IPO

In the run-up to its BSE SME IPO, D2C meat delivery company Zappfresh has raised INR 16.8 Cr from anchor investors. The company allocated 16.7 Lakh equity shares to anchor investors at INR 101 apiece, which is the upper end of the company’s IPO price band.

A total of 11 institutional investors participated in the company’s anchor round. In this, Craft Emerging Market Fund bought the highest 4 Lakh equity shares or 23.9% of the anchor round for over INR 4 Cr. The investor took part in the round via its two funds, Elite Capital Fund and Citadel Capital Fund.

Meanwhile, Viney Growth Fund invested INR 2.5 Cr for 2.48 Lakh shares, representing 14.9% of the total anchor allocation. Further, Narnolia India Opportunity Fund bought 1.9 Lakh shares worth INR 2 Cr, taking up 11.66% of the allocation.

The remaining equity shares were picked up evenly by six investors, namely Ekamya Pragati Scheme – 1, Grobiz SME Opportunity Fund, Milltrust International, Singapore-based Necta Bloom, RMS Investments and Resonance Opportunities Fund. Each of these investors lapped up slightly over 1 Lakh shares or 6.26% of the total anchor portion for INR 1.1 Cr.

With this, the new-age tech company’s IPO, comprising a fresh issue of 55.8 Lakh shares, is set to open tomorrow (September 26) and will close on September 30 (Monday). At the upper end of the price band, the company expects to raise INR 59.6 Cr via the IPO. The public offering will value it around INR 225 Cr. 

The company plans to allocate INR 25 Cr from the IPO proceeds to working capital, INR 15 Cr to marketing, INR 11 Cr to capex, and INR 3 Cr to acquisitions. As per its RHP, it also intends to invest INR 10 Cr in setting up six cold storage units across Delhi, Mumbai, and Odisha. 

Founded in 2015 by former Licious cofounder Deepanshu Manchanda, Zappfresh sources fresh meat directly from farms and offers delivery within 90 minutes in Delhi, Karnataka and Maharashtra. 

On the financial front, the company turned profitable in FY23 and has been able to maintain profitability in the subsequent fiscal years. For the fiscal year FY25, Zappfresh’s net profit surged 94% to  INR 9.1 Cr from INR 4.7 Cr in FY24. Meanwhile, its operating revenues surged 45% YoY to INR 130.7 Cr.

While it would become the first meat delivery new-age tech company to get listed in India, it competes with much larger players like Licious, FreshToHome, Meatigo, and Captain Fresh in the category.

In the list of its competitors, Captain Fresh also filed for an IPO recently via the confidential route. As per sources, the company’s mainboard listing will comprise a fresh issue of around INR 1,700 Cr and an offer for sale component in the range of INR 1,300 Cr to INR 1,700 Cr.