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Zomato’s business-to-business (B2B) restaurant supplies business Hyperpure is working on setting up a plant to process food supplies like sauces, spreads, and pre-cut and semi-finished perishable products to expand its offerings for restaurants.

The move is expected to expand margins and drive higher engagement with restaurant partners, the food and grocery delivery firm told investors on Thursday.

Launched in 2019, Hyperpure offers daily supplies like dairy, pulses, bakery items, and cookware such as kitchen tools and crockery to restaurants at wholesale prices. 

YourStory reported in December 2022 that the vertical was looking to add ready-to-cook and frozen food to its portfolio, along with an end-to-end ecosystem for restaurants to manage their entire backend operation including affordable eco-friendly packaging and inventory management.

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In the October-December quarter of FY24, Hyperpure—which is now Zomato’s second-largest vertical by revenue—posted an operational revenue of Rs 859 crore, doubling from Rs 421 crore earned in the same period in the previous fiscal year.

It grew 15% quarter-on-quarter, driven by growth in both the core restaurant supplies business and the relatively newer quick commerce opportunity, Zomato noted.

In August 2022, Hyperpure completed the acquisition of the warehousing and ancillary business of Hands on Trades Private Limited (a former subsidiary of quick commerce firm Blinkit) for Rs 61 crore in an all-cash deal.