DSM Fresh Foods About Zappfresh

About the Company

• DSM Fresh Foods Limited (previously known as DSM Fresh Foods Private Limited) was established in 2015 and is headquartered in Gurgaon, Haryana. The company operates under the brand name Zappfresh. It is a leading online brand that focuses on fresh meat and cooked/ready-to-eat products. The company's main goal is to ensure that every product that reaches the end consumer is fresh, healthy, and hassle-free.
• The company ensures that the products are produced as per best practices, maintain freshness, and adhere to ethical standards of food safety and sustainability. Zappfresh works as per FSSAI guidelines and is 9001:2008 and Halal certified.
• Zappfresh serves a wide customer base through its online platform, with over 50,000 monthly customers and a record rate of 90% record rate. The company's customers include families and individuals looking for high-quality, fresh meat products.

Business Model

• Local Sourcing and Processing: They source meat and fish from local farms, process it in their factory, and customize the cuts before delivering them to customers.
• Transparency from Farm to Table: They ensure complete transparency on the origin and quality of their meat at various stages, providing fresh, tender, and healthy meat products without antibiotics or hormones.
• Multi-Channel Sales: They leverage their direct-to-consumer (D2C) online platform and partner with offline retailers to ensure wide product availability.

Products and Services:

Zappfresh offers a wide range of products, including:

• Fresh Meat: Chicken, Lamb, Pork, Seafood, Specialty Meats. Ready to cook and eat products: Mutton seekh kebabs, chicken cheese nuggets, masala fish fingers, etc.
• Cold cuts: Chicken salami, chicken ham, sausages.
• Marinated meats: Chicken methi tikka, masala wings, chicken tikka.

Industry

The meat and seafood market in India is very large, with a current market size of INR 256,000 crore (as of 2023), and is expected to grow at a CAGR of 11% till 2027. There is a huge opportunity for organized players like Zappfresh to enter the largely unorganized market and offer high-quality and standardized meat products.

Branches and Subsidiaries

• As of 2024, Zappfresh is present in four states (Delhi, Uttar Pradesh, Haryana, and Karnataka) and plans to expand to four more metros over the next three years
• The company operates eight distribution centres and two processing facilities. It also entered the Bengaluru market through an acquisition in mid-FY24.
  

  
  

  Recent Developments:

  • Takeovers: The first takeover was completed last year – Dr. Sukos Foods Meat. Dr. Meat specialises in providing sustainably grown chicken from the outskirts of Bangalore and has operations in Delhi NCR.
  • Funding: The company has raised around $14 million so far, including $4.3 million from Ah! Ventures, HT Media, and others in November last year.
  • Financial performance: For the financial year ending March 2023, Zappfresh's operating revenue remained unchanged at Rs 56 crore, and profit was Rs 11 crore.

  Stock market information

  DSM Fresh Foods Limited WILL be listed later this financial year (FY25). The company plans to raise Rs 600 crore through the IPO to support its expansion into new markets and further product development. With this capital infusion, the company expects its revenue to grow fivefold and PAT to quadruple over the next five years. The funds will be used for investments, the construction of a new distribution center, and potential acquisitions.

  Fundamentals