DSM Fresh Foods Pvt. Ltd, which runs online meat brand Zappfresh, has marked its first acquisition with Bengaluru-based e-tailer Dr. Meat, for an undisclosed amount.
However, according to multiple people close to the development, the deal was pegged at around $3 million (Rs 24 crore).
With this buyout, SIDBI-backed Zappfresh will look to expand its footprints across India’s southern pockets, it said in a release.
With this acquisition, the meat delivery startup is eyeing a revenue of Rs 70 crore within one year from Bengaluru alone, and about Rs 300 crore overall revenue by end of FY24, the statement further said.
On the other hand, Dr. Meat, operated by Sukos Foods, claims to offer chicken nurtured with new-age sustainable breeding practices at their poultry farms on the outskirts of Bengaluru, as per the company’s LinkedIn profile.
Gurugram-based Zappfresh was launched by Deepanshu Manchanda and Shruti Gochhwal in 2015. It procures meat from farms and claims to deliver to the end customer in 90 minutes once the order is placed.
“We have sought opportunities for strategic partnerships and acquisitions in recent years. However, Dr. Meat stood out among other direct-to-consumer (D2C) contenders due to its alignment with Zappfresh's fundamental principles,” said Manchanda.
Zappfresh, which counts SIDBI Venture Capital, Dabur family office, LetsVenture and Keritsu Forum as among its investors, is eyeing to gain traction in the Bengaluru market in the next six months.
In 2015, Zappfresh raised Rs 2 crore in angel round of funding from a couple of unnamed investors.
In 2018, the startup secured Rs 20 crore in a combination of angel and institutional investment. Amit Burman of Dabur India Ltd, had led the round, while SIDBI Venture Capital also participated in the round.
