Zappfresh, a direct-to-consumer (D2C) meat delivery startup, said that it has filed its draft red herring prospectus (DRHP) with SEBI to list on the BSE SME platform. The initial public offering (IPO) will consist of a fresh issue of 59.06 lakh equity shares, with a face value of Rs 10, and will not include an offer-for-sale component.
The proceeds will be strategically allocated to drive growth initiatives, including unidentified acquisitions, marketing, and capital expenditure enhancements, working capital optimization, and general corporate purposes, said the company.
Notably, Zappfresh is the first D2C food startup to embark on this listing journey. On this occasion, Deepanshu Manchanda, founder of Zappfresh, quipped, "We are proud to take this monumental step towards listing on the BSE SME platform, which testifies to our unwavering dedication to transparency, accountability, and growth. As we remain committed to delivering exceptional quality, convenience, and value to our customers while creating sustainable stakeholder value."
As per a press release, Zappfresh is backed by esteemed investors, including SIDBI (19 per cent), Amit Burman Family Office (10 per cent), Hindustan Times, Unity Bank, Lets Venture, Ah! Ventures, Keritsu Forum, and Heifer Impact, among others. The promoters hold a 40 per cent stake in the company.
The company has recently expanded its footprint into new territories, including Mumbai and Bangalore, and has acquired Bonsaro and Dr. Meat to enhance its offerings and market presence. The press release claimed that the company is also in an advanced stage of introducing their business in the Middle East including more acquisitions for inorganic growth.
In FY 2023-24, Zappfresh achieved an impressive EBIDTA of Rs 7.6 crore and revenue of Rs 90 crore. Narnolia Financial Services has been appointed as the Book Running Lead Manager (BRLM) for the IPO.
