SUMMARY
- Delhi NCR-based meat delivery startup Zappfresh has acquired Mumbai-based online meat and seafood brand Bonsaro in a cash-only deal.
- The combined entity is aiming for Rs 160 crore in revenue post-acquisition in FY25 along with an increase in the PAT.
- This acquisition follows Zappfresh’s strategy of expanding its customer base and positioning itself as a leading force in the D2C meat market in western India.
Delhi NCR-based meat delivery startup Zappfresh has acquired Mumbai-based online meat and seafood brand Bonsaro in a cash-only deal. The specifics of the financial agreement were not made public. In this deal, Zappfresh has taken over Bonsaro’s operations and assets to broaden its reach in the western region. The combined entity is setting its sights on achieving a revenue of 160 crore in the financial year 2024-25 and a significant increase in its profit after tax (PAT), as stated in a press release.
This acquisition follows Zappfresh’s strategy of expanding its customer base and positioning itself as a leading force in the D2C meat market in western India.
This move is Zappfresh’s second acquisition, following its purchase of Sukos Foods operated brand Dr Meat last year to grow its presence in the South Indian market.
Zappfresh is also in the process of listing on the stock exchanges through an Initial Public Offering (IPO). This move has seen the company transform into a public entity earlier this year.
Should ZappFresh go public, it will become the first D2C startup to list in the meat delivery sector.
In terms of competition, ZappFresh faces off against major players like Licious, Fresh2Home, and TenderCuts in the D2C meat delivery market, as well as Swiggy Instamart, Big Basket, and Blinkit in the fast-commerce and grocery segments.
The meat delivery startup has previously sought a funding of Rs 30 crore ($4.3 million) in an undisclosed round from Ah! Ventures, HT Media, Unity SFB, and Heifer Impact in November. The startup has since committed the funds to its acquisitions, expansion, and infrastructure improvements across both the northern and southern regions.
Founded in 2015 by Deepanshu Manchanda and Shruti Gochhwal, Zappfresh sources its meat directly from farms and promises to deliver it to customers within 90 minutes after an order is placed. Currently operational in Delhi-NCR and Bengaluru, Zappfresh is backed by investors including SIDBI VC, Dabur Family Office, LetsVenture, and Keiretsu Forum.
Manchanda has stated, “Our acquisition of Bonsaro is a pivotal moment for Zappfresh. By integrating Bonsaro into our portfolio, we are poised to build a pan-India brand that operates in key markets. Mumbai, being a critical market, will contribute significantly to our footprint in the West. Our expansion strategy remains disciplined—we expand one city at a time, ensuring profitability without compromising our bottom line. We only venture into new markets once we achieve break-even.”
While ZappFresh has not disclosed its total revenue for FY24, it has previously stated its goal of achieving a consolidated revenue of Rs 300 crore by the end of the fiscal year 2024-25, with a target of Rs 70 crore from Bengaluru alone.
This situation is at the core of the D2C fresh meat sector, which is currently experiencing a downturn, leading these businesses to expand their product lines. The founders of Zappfresh’s rival, Licious, have announced their intentions to open five brick-and-mortar stores in Bengaluru by June and to grow their store network to between 35 and 40 stores across two cities by FY25.
In addition, other competitors such as the D2C firm in Chennai, Fipola, has closed its doors, and TenderCuts has been acquired by Delhi-based Good To Go.
Despite these challenges, Zeppfresh has stood out as one of the few successful startups in the online D2C meat industry. This is evident in ZappFresh’s financial performance, with a profit of Rs 3.5 crore and a revenue of Rs 70 crore for FY23.
