D2C meat brand Zappfresh has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its public listing on BSE SME (Small and Medium Enterprises) platform.
The IPO consists of a fresh issue of 59.06 lakh equity shares, with a face value of Rs 10, and has no offer for sale.
Zappfresh MD and CEO, Deepanshu Manchanda, is the promoter of the IPO.
Zappfresh, which competes with FreshToHome and Licious, plans to use the funds for marketing, capex, acquisitions, and general working capital. Promoters hold 40% stake in the company.
The draft filing comes just days after the company announced the acquisition of Mumbai-based Bonsaro for an undisclosed amount as it tries to tap into western markets. It had earlier acquired Bengaluru-based Dr Meat to penetrate the region.
The company plans to set up shop in the Middle East very soon, Manchanda told YourStory earlier.
Zappfresh is backed by SIDBI which holds a 19% stake, Amit Burman Family Office which has a 10% stake, Hindustan Times, Unity Bank, Lets Venture, Ah! Ventures, Keritsu Forum, and others. It sells meat and ready-to-eat animal protein products online. It has raised $14.5 million to date, according to market intelligence firm Tracxn.
Majority of its revenues comes from Delhi and Haryana, which contribute 36% and 28% respectively. The company deals in chicken, meat and seafood but more than half of its sales are driven by chicken.
Zappfresh, which was founded by Deepanshu Manchanda and Shruti Gochhwal in 2015, clocked an operating revenue of Rs 90.43 crore in FY24, 60% higher than Rs 56.28 crore it posted a year ago. During the same period, it made a profit of Rs 7.62 crore from continuing operations, according to the DRHP.
