Gurugram based DSM Fresh Foods fresh meat brand Zappfresh has raised Rs 20 crore in pre-series A round of investment from the Vice Chairman of Dabur India, Amit Burman and SIDBI Venture capital. The company plans to use the funds in driving business strategy, expanding supply chain and to scale up geographically.
Commenting on the investment, Amit Burman, Vice Chairman at 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.”
The company claims to have reached the breakeven point in the first 8 months, after raising the angel investment from renowned HNIs. The company has scaled rapidly since its inception in 2015 and now claims to provide services to entire Delhi NCR from its Gurgaon based factory.
Zappfresh was founded by Deepanshu Manchanda and Shruti Gochhwal in 2015. They procure meat from the farms and delivers it to the end-customer in the selected time-slot on the same day. The company deals in raw meat and cooked meat products.
The company in a media release stated that the investment has laid the foundation to validate this category of business to have a growth potential. While investing partner Amit Burman will offer mentorship to the company.
Commenting on the investment and why Zappfresh, Sajit Kumar, Senior Vice President at SIDBI 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.”
The company has 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.
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”