Zappfresh (DSM Fresh Foods Limited) is India’s leading omnichannel full-stack meat brand, established in 2015. The company specializes in delivering fresh, unpreserved meat and ready-to-cook products through its digital platform, serving five states: Delhi, Uttar Pradesh, Haryana, Karnataka, and Maharashtra.
Business Model & Operations
– Core Offering: Fresh meat delivery within 24 hours of slaughter with 90-minute express delivery options
– Product Categories: Fresh chicken, mutton, seafood, and ready-to-cook/eat products
– Distribution Model: Farm-to-Fork approach ensuring quality and transparency
– Digital Presence: User-friendly website and mobile app with 100,000+ downloads
– Quality Control: Temperature-controlled distribution and advanced processing systems
Financial Performance Analysis
Revenue Breakdown FY 2023-24
Total Revenue: ₹9,043.92 lakhs (60.68% YoY growth)
Profit After Tax: ₹466.65 lakhs
Product-wise Revenue
– Chicken: ₹5,108.35 lakhs (56.48%)
– Seafood: ₹2,086.03 lakhs (23.07%)
– Mutton: ₹1,849.54 lakhs (20.45%)
Geographical Distribution
– Delhi: ₹3,232.15 lakhs (35.74%)
– Haryana: ₹2,528.77 lakhs (27.96%)
– Uttar Pradesh: ₹1,902.86 lakhs (21.04%)
– Karnataka: ₹1,380.13 lakhs (15.26%)
Customer Base Analysis
– Diversified customer base with low concentration risk
– Top 10 customers contribute only 5.39% of revenue (FY 2023-24)
– Declining dependency on top customers (14.53% in FY 2021-22 to 5.39% in FY 2023-24)
Market Opportunity & Growth Potential
Market Size
– Current Indian meat market: ₹2.56 lakh crores (2023)
– Projected market size: ₹3.84 lakh crores by 2027
– Expected CAGR: 11%
– Unorganized sector represents a ₹4 trillion opportunity (90% of market)
Growth Strategy
Expansion Plans
- Offline Retail
– Target: 600+ stores by FY28
– Converting traditional meat shops into “Zappfresh Stores”
– Strategic acquisitions (Sukos Foods and Majestic Aliments)
- Capital Deployment (IPO Proceeds)
– Capital Expenditure: ₹1,350 lakhs
– Marketing & Branding: ₹1,500 lakhs
– Working Capital: ₹2,500 lakhs
- Revenue Growth
– Targeting 5x revenue growth through market expansion
– Focus on new geographical markets
– Omnichannel presence enhancement
Future Outlook
Short-term Objectives
– Expansion of cold storage infrastructure
– Enhancement of delivery fleet
– Strengthening brand presence through marketing
Long-term Vision
– Market leadership in organized meat retail
– Pan-India presence through omnichannel strategy
– Sustainable and profitable growth
– Enhanced market share in the organized sector
10.87%
