While the valuation remains undisclosed, it is notably higher than the previous round's valuation of $22.9 million in 2019, according to multiple media reports.
How much has Hindustan Media invested?
Hindustan Media Ventures Ltd has invested Rs 11.99 crore and will acquire a 3.54% stake in DSM Fresh Foods, which operates direct-to-consumer online meat delivery brand Zappfresh.
"The company entered into an agreement on November 20, 2023, for making an investment of Rs 11.99 crore by subscribing to 807 equity shares of DSM Fresh Foods Pvt Ltd, constituting 3.54 per cent holding of the fully diluted share capital of the target entity, Hindustan Media Ventures Ltd (HMVL) said in a regulatory filing
What is the purpose of fundraising?
With this round of funding, ZappFresh plans to focus on diversifying its product offerings with items like premium country meat, enhancing distribution capabilities, and expanding into new geographical areas.
Additionally, The startup is considering acquisitions and acqui-hires, with potential targets already in discussion for FY25.
What does ZappFresh do?
Founded in 2015 by Deepanshu Manchanda, ZappFresh offers fresh meat, seafood, and ready-to-cook products online. The startup gets meat and fish from nearby farms, prepares them at facilities, and then delivers customized orders to customers.
As part of the funding round, The startup will introduce new product lines, including poultry, goat meat, seafood, and ready-to-eat items. The expansion is part of its broader strategy to strengthen its market position and cater to evolving customer needs. It also plans to extend its operations to two more cities within 12 months.
Is ZappFresh profitable?
ZappFresh has reported a profit of Rs 3.5 crore in FY23 on a revenue of Rs 70 crore. The profitability sets it apart in the online meat ecosystem, where many competitors face significant losses. For instance, rivals like Licious and FreshToHome have reported substantial losses despite higher revenues.
It will collaborate with about 40,000 women farmers to source premium chicken meat as part of the funding agreement with Heifer Impact Capital.