About DSM Fresh Foods Zappfresh

About the Company

1. Incorporated in 2015 and headquartered in Gurgaon, Haryana, DSM Fresh Foods Limited, formerly known as DSM Fresh Foods Private Limited, operates under the brand name Zappfresh. It is a leading online brand focusing on fresh meat and ready-to-cook/eat products. The company's primary objective is to ensure that all produce reaching the end consumer is fresh, healthy, and hassle-free.
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3. The company ensures its products are prepared through best practices, maintaining freshness, and adhering to ethical food safety and sustainability standards. Zappfresh operates under FSSAI guidelines and is 9001:2008 and Halal certified.
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5. Zappfresh serves a wide customer base through its online platform, with over 50,000 monthly transacting customers and a 90% repeat order rate. The company's clientele includes families and individuals who seek high-quality, fresh meat products.

Business Model

1. Local Sourcing and Processing: Sources meat and fish from local farms, processes them at plants, and customizes pieces before delivery to customers.
2. Farm-to-Fork Transparency: Ensures complete transparency in the source and quality of meat at different stages, delivering fresh, tender, and healthy meat products free from antibiotics and hormones.
3. Multi-Channel Sales: Utilizes a direct-to-consumer (D2C) online platform and partners with offline retail stores for widespread product availability

Products and Services:

Zappfresh offers a wide range of products, including:

1. Fresh Meat: Chicken, mutton, pork, seafood, and specialty meats.
2. Ready-to-Cook and Ready-to-Eat Products: Mutton Seekh Kebab, Chicken Cheese Nuggets, Masala Fish Fingers, and more.
3. Cold Cuts: Chicken Salami, Chicken Ham, and sausages.
4. Marinated Meats: Chicken Methi Tikka, Masala Wings, and Chicken Tikka.

Industry

The meat and seafood market in India is significantly large, with a current market size of INR 2,56,000 crores as of 2023, and is expected to grow at an 11% CAGR until 2027. There is a substantial opportunity for organized players like Zappfresh to tap into the largely unorganized market, providing high-quality, standardized meat products.

Branches and Subsidiaries

1. As of 2024, Zappfresh has a presence in four states (Delhi, Uttar Pradesh, Haryana, and Karnataka) with plans to expand to four additional metro cities over the next three years.
2. The company operates eight delivery hubs and two processing units. It has also entered the Bengaluru market through an acquisition in mid-FY24.

Recent Developments:

1. Acquisition: Last year, it completed its first acquisition — Dr. Meat from Sukos Foods. Dr. Meat specializes in providing sustainably bred chicken from the outskirts of Bengaluru and is operational in Delhi-NCR.
2. Funding: The company has raised around $14 million to date, including $4.3 million from Ah! Ventures, HT Media, and others in November last year.
3. Financial Performance: For the fiscal year ended March 2023, Zappfresh's revenue from operations was flat at Rs 56 crore, with a profit of Rs 11 crore.

Listing Information

DSM Fresh Foods Limited is likely to go public in the last leg of the ongoing financial year (FY25). The company plans to raise Rs. 600 million through an initial public offering (IPO) to support its expansion into new markets and further product development. With this infusion of capital, the company expects to increase its revenue fivefold and PAT fourfold over the next five years.

The funds will be used for capital expenditures, building new delivery hubs, and potential acquisitions.