By Disha Acharya
Copyright indiatimes
Omnichannel meat seller Zappfresh will be using technology and data for scaling business in a challenging temperature-sensitive category, founder Deepanshu Manchanda said during a press conference for its upcoming initial public offering (IPO) on Monday.DSM Fresh Foods Limited, the parent company of Zappfresh, is set to raise about Rs 60 crore in a fresh issue of 59,06,400 equity shares in a price band of Rs 96 – Rs 101 per equity share. The IPO is scheduled to open on September 26 and close on September 30. Zappfresh’s IPO will be listed on BSE SME, which is a specialised stock trading platform for small and medium enterprises (SMEs).“We are looking at further penetration in newer markets in Bengaluru and Mumbai,” said Manchanda. “We will be investing in working with the local meat shops and hotels, and restaurants. Offline is going to play a critical role for the next few years.”Zappfresh currently has 15 partner shops and aims to ramp up to 200 in the coming years. The platform is currently receiving about 6,000 orders per day. It sells fresh meat as well as ready-to-cook offerings on its website, marketplaces, and partner offline stores.“The biggest focus for us will be to harness technology, which will be an enabler for our offline business, where it can be seamlessly integrated to build scale in that direction,” Manchanda told ET. “Our ability to execute, depending on different geographies, will be the only lever for growth since we have found the product-market fit and the market exists.”The company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) last August. According to the DRHP, it plans to utilise the proceeds of the share sale to meet its working capital requirements of Rs 25 crore, marketing expenditure of Rs 15 crore, capital expenditure of Rs 11 crore, and Rs 3 crore for acquisitions and other initiatives.In the online meat segment, Zappfresh’s competition includes Licious, FreshToHome, and TenderCuts, among others. Meat and seafood home-delivery platform Licious also has plans to go public, likely in 2027-28.
