Zappfresh Closes Funding Round of Rs 20 Cr
Since inception in 2015, the company managed to successfully break even in the first eight months after raising modest angel funding from renowned individual investors.
Zappfresh, the high-quality fresh meat brand run by Gurugram-based DSM Fresh Foods Pvt. Ltd has raised funding of INR 20 crore from Mr. Amit Burman, Vice Chairman, Dabur India and SIDBI Venture Capital. The fresh in-flow of capital will help the company in driving business strategy and expanding supply chain as well as geographical reach.
Since inception in 2015, the company managed to successfully break even in the first eight months after raising modest angel funding from renowned individual investors. Under their mentorship and guidance, the Company scaled rapidly over the next 3 years. The firm has built capabilities to service entire Delhi NCR from its state of the art factory in Gurgaon.
Zappfresh is helping Consumers eat better and is determined to revolutionise the loose/wet meat market by bringing standardisation, transparency and quality across the supply chain - How the meat is sold and bought has changed radically in the last 3 years and will transform in the next decade. While majority organized players are primarily focused on exports, the domestic market is poised at a healthy 15% annual CAGR.
This funding has laid the foundation to validate this category of business to have immense growth potential and the investing parties including Mr. Burman will offer guidance on how to scale up to the next level.
Highlighting the reason behind choosing to invest in Zappfresh, Mr. Amit Burman, Vice Chairman, Dabur India, said “I see a great potential in the ‘e-market for meat’ and Zappfresh has had an impressive growth story. The business model is innovative and the use of technology in the supply chain management has allowed for the possibility of a sustainable scale up capability. I look forward to be part of this venture and its success.”
Mr. Sajit Kumar, Sr. VP, SIDBI Venture Capital said, “Investing in a firm many times translates to investing in an idea with the potential to scale up. This in my mind is the story of Zappfresh. The fresh meat industry is highly fragmented and digitization of the market can also improve the value chain operating system of this industry. Zappfresh’s promise to offer a hassle-free meat buying experience of highest quality is unique and has great potential.”
Talking about the latest round of funding, Deepanshu Manchanda, CEO & Co-Founder, Zappfresh said, “The company would use the funds to hire people in key departments and increase storage capacity. We are very excited to have Mr. Burman and SIDBI Venture Capital on board believing in our business and supporting our expansion plans. This investment will aid our back-end support along with expansion in newer markets after having laid a strong foundation in Delhi-NCR”
Further adding to this, Shruti Gochhwal, Co-Founder, Zappfresh said, “Our strength has been the control on quality and speed of delivery. The back-end cold supply chain is aided with strong proprietary technology to control inventory. We are a Consumer driven Company and quality and freshness of the product allows us an 85% repeat rate. We are very pleased with this new financial capability and guidance from industry veterans. This will further improve and expand our offering of farm to fork fresh produce and ensure that every household has access to right quality of meats.”
Zappfresh has laid out its plans to leverage the funds raised for strengthening its technology backbone, expanding its team, bolstering the product and enhancing its community. By augmenting its tech infrastructure, Zappfresh will be able to add more innovative and engaging features to its already popular app and website making the online buying experience of meat much better and customer driven.
Zappfresh has also pioneered the concept of ‘Farm to fork’ via the use of Farm-Tech to optimize their time-to-delivery and costs. They are engaged with a number of farms to ensure absolutely fresh and chemical free products. Their technology helps connect farmers, vendors and retail channels. This is done via real time data and inventory tracking, reducing time-to- consumer from farm.
By controlling the entire lifecycle of the supply chain, Zappfresh genuinely controls and champions the cause of freshness, health and hygiene. The cold supply chain ensures the right temperature between 0-4 degrees delivered within 24 hours.
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