ZappFresh Prepares for Public Listing, Converting into Public Entity

Gurugram-based meat delivery platform ZappFresh is taking a significant step towards joining the ranks of established companies like Swiggy, FirstCry, Cars24, Pine Labs, and Pepperfry by preparing for an initial public offering (IPO).

First Steps: Corporate Restructuring and Name Change

As the initial step in this process, ZappFresh is officially converting its status from a private limited company to a public limited company. This transformation is reflected in the company’s new name, DSM Fresh Foods Limited, as revealed by regulatory filings. Industry sources, as reported by Entrackr, suggest a potential IPO launch during the latter part of the current financial year (FY25).

Building a Sustainable Business Model

Founded in 2015 by Deepanshu Manchanda, ZappFresh offers a convenient platform for customers to purchase fresh meat, seafood, and ready-to-cook meals through its mobile app and website. The company prioritizes ethical sourcing by procuring meat and fish from local farms. Processing and customization of these products occur at their facilities before final delivery to the customer’s doorstep.

Strategic Acquisitions and Growth Initiatives

ZappFresh marked its entry into the acquisition space in 2023 with the purchase of Dr. Meat, a Bengaluru-based company specializing in sustainably bred chicken. This acquisition expands ZappFresh’s operational reach to Delhi-NCR alongside its existing Bengaluru presence.

Preparing for the Public Market

In anticipation of the IPO, ZappFresh has undertaken crucial preparatory measures. The company has increased its authorized capital and announced a generous bonus share issuance, offering existing shareholders 725 equity shares for every 1 share currently held. Additionally, the company has proposed the appointment of Anchal Kapoor and Suman Chaudhary as independent directors, with Deepanshu Manchanda nominated for the positions of Managing Director and Chairman.

Financial Standing and Investment Landscape

ZappFresh has successfully secured approximately $14 million in funding to date. This includes a $4.3 million investment secured in November 2023 from Ah! Ventures, HT Media, and other investors. According to TheKredible, a startup data intelligence platform, SIDBI Venture Capital holds the largest external stakeholder position in ZappFresh, followed by other investors. While the company’s financial results for FY24 are yet to be filed, they reported flat revenue from operations of Rs 56 crore for FY23, alongside a profit of Rs 11 crore during the same period.