MUMBAI: Fresh raw meat e-tailer Zappfresh has raised Rs 20 crore ($3 million) in a round led by Amit Burman, Vice Chairman of Dabur India. The second institutional round of funding by the company also saw participation from SIDBI Venture Capital.
The Gurgaon based startup run by DSM Fresh Foods Pvt Ltd will use the capital raised to expand its supply chain, to beef up its management team as also widen its geographical reach.
“The company would use the funds to hire people in key departments and increase storage capacity. This investment will aid our back-end support along with expansion in newer markets after having laid a strong foundation in Delhi-NCR,” said Deepanshu Manchanda, CEO & Co-Founder, Zappfresh.
Founded in 2015 by Manchanda and Shruti Gochhwal, both of whom have worked with Mobikwik previously, Zappfresh procures meat from poultry farms, bypassing local mandis and delivers it to customers within the same day. The 3 year old startup also sells pre-cooked items like cold-cut ham, sausages, etc.
“I see a great potential in the e-market for meat. Zappfresh’s business model is innovative and the use of technology in the supply chain management has allowed for the possibility of a sustainable scale up capability,” Amit Burman, Vice Chairman, Dabur India.
With this Zappfresh has raised about $4 million so far and is looking to use a large part of the capital to augment its technology capability to help organise the highly fragmented meat market. Zappfresh competes with Bangalore-based gourmet meat startup Licious which is backed by Mayfield India and 3one4 Capital.