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ZappFresh
Direct-to-Customer (D2C) meat delivery startup ZappFresh today said it has acquired Bengaluru-based Dr. Meat as it aims to drive market expansion into the southern India market.
The startup, however, didn't disclose the deal value; several media reports said ZappFresh would be paying $3 million to buy out Dr. Meat, which competes with Freshtohome and Licious in the Bengaluru city.
ZappFresh said it anticipates achieving significant growth post-acquisition, expecting a revenue of Rs 70 crore within the first 12 months in Bengaluru. The company also forecasts a top-line of Rs 300 crore by the end of the financial year 2023-24.
According to the company's spokesperson, Manchanda, ZappFresh has maintained profitability for the past four years. With the new acquisition, the focus for the next six months will shift to building market traction in Bengaluru. The company aims to fortify its regional position by expanding into new postal code areas.
“We have actively sought opportunities for strategic partnerships and acquisitions in recent years. However, Dr. Meat stood out among other D2C contenders due to its strong alignment with ZappFresh’s fundamental principles. Dr. Meat’s demonstrated ability to achieve substantial scale without compromising its bottom line resonates strongly with ZappFresh’s vision,” said Deepanshu Manchanda, Founder, Zappfresh in a statement.
The startup counts SIDBI VC, Dabur Family Office, Letsventure, Keritsu Forum, along with prominent angel investors as its backers. At present, ZappFresh claims to have a customer base of over 300,000 in the National Capital Region (NCR).
Market research firm Ken Research forecasts that the online meat delivery market in India is set to expand to around $3 billion by 2026. This is attributed to the growing preference among millennials for online meat purchases, coupled with the post-pandemic adoption of digital channels for buying goods among consumers.
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