D2C meat delivery startup ZappFresh has successfully acquired Sukos Foods’ brand, Dr. Meat, marking a significant milestone as it aims to expand its presence in the south Indian market. Founded in 2015 and headquartered in Gurugram, ZappFresh had been exclusively delivering meat in the Delhi-NCR region until now.
ZappFresh Entry into Bengaluru and New Markets
Through this acquisition, the startup intends to enter the Bengaluru market and explore new markets by the following year. Leveraging Dr. Meat’s supply chain in the targeted region is a crucial aspect of the deal, enabling ZappFresh to establish its operations effectively.
ZappFresh Revenue Goals and Traction Building in Bengaluru
It has set ambitious revenue targets, aiming to achieve INR 70 crore within 12 months in Bengaluru alone and targeting an overall revenue of INR 300 crore by the end of the FY 23-24. To achieve these goals, the startup plans to build traction in the Bengaluru market by expanding its presence to new pin codes and solidifying its position in the region.
Strategic Acquisition and Growth Opportunities
Deepanshu Manchanda, co-founder of ZappFresh, emphasized the importance of strategic partnerships and acquisitions. He highlighted that among other contenders in the D2C space, Dr. Meat stood out due to its strong alignment with ZappFresh’s fundamental principles. With four profitable years under its belt, ZappFresh is confident in achieving its revenue targets within a year and remains proactive in seeking additional growth opportunities.
ZappFresh’s Competitive Landscape and Investor Support
As a D2C startup, ZappFresh has garnered support from notable investors, including SIDBI VC, Dabur Family Office, LetsVenture, Keiretsu Forum, and prominent angel investors. The D2C meat and grocery delivery industry gained significant popularity during the pandemic-induced lockdowns and has become highly competitive. It faces competition from unicorn player Licious, as well as other competitors such as Swiggy Instamart, BigBasket, Blinkit, TenderCuts, and more. The startup aims to leverage its established supply chain and is actively exploring further acquisitions to fuel its expansion plans.
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