Zappfresh aims to invest the capital in driving business strategy and expanding supply chain as well as tapping new markets.
Gurugram-based fresh meat delivery startup Zappfresh has raised Rs 20 crore in pre-Series A funding from Amit Burman, Vice Chairman, Dabur India and SIDBI Venture Capital. The startup aims to invest the capital in driving business strategy and to expand supply chain and tap new markets.
In July 2015, Deepanshu Manchanda and Shruti Gochhwal co-founded Zappfresh to deliver fresh high-quality meat. With an aim to streamline the unorganised meat industry, Zappfresh procures meat from the farms and ensures the product reaches the end customer in the chosen time slot the same day once the order is placed on its portal. It sells raw and ready-to-cook meat. Zappfresh uses innovative packaging techniques to ensure freshness and hygiene before it is delivered to the customer.
Since inception in 2015, the company managed to successfully break even in the first eight months after raising Rs 2 crore in angel funding from marquee investors. The following year, the company raised another round of undisclosed funding from two angel investors. Over a period of three years the company claims to scaled rapidly and has built capabilities to service entire Delhi NCR from its state-of-the-art factory in Gurugram.
In a statement released by Zappfresh, 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 being part of this venture and its success.”
While majority organised players are primarily focused on exports, the domestic market is poised at a healthy 15-percent annual CAGR. 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, In the last three years, Zappfresh claims to be transforming how meat is sold and bought, and will continue doing so in the next decade.
“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 digitisation 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,” said Sajit Kumar, Senior VP, SIDBI Venture Capital.
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 more customer-driven.
“The company would use the funds to hire people in key departments and increase storage capacity. We are very excited to have Amit 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,” added Deepanshu Manchanda, CEO & Co-Founder, Zappfresh.
Zappfresh has also pioneered the concept of ‘Farm to Fork’ via the use of farmtech to optimise their time-to-delivery and costs. It is engaged with a number of farms to ensure absolutely fresh and chemical-free products. It claims its technology helps connect farmers, vendors and retail channels via real-time data and inventory tracking, and reduced time-to-consumer from farm.
“We are a consumer-driven company and quality and freshness of the product allows us an 85-percent 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 the right quality of meats,” added Shruti Gochhwal, Co-Founder, Zappfresh.
Controlling the entire lifecycle of the supply chain has helped Zappfresh maintain freshness, health and hygiene.