Zappfresh IPO : Price Band Set At INR 96-101

A day after filing its red herring prospectus (RHP), meat delivery startup Zappfresh has set a price band of INR 96 to INR 101 per share for its SME initial public offering (IPO) that will open for subscription on September 26 and close on September 30.

Anchor investor bidding will take place on September 25.

Investors will have to bid for a minimum of 2 lots of 1,200 equity shares each and in multiples of 1,200 equity shares thereafter.

The IPO will solely consist of a fresh issue of up to 59.06 Lakh shares. At the upper end of the IPO price band, Zappfresh will raise INR 59.65 Cr from the IPO and will be valued at around INR 225 Cr (about $25.4 Mn).

Of the total issue, 3.31 Lakh shares will be reserved for subscription by market makers who provide both buy and sell quotes for a particular security on a stock exchange to provide liquidity.

Zappfresh will utilise INR 25 Cr from the IPO proceeds for working capital requirements, INR 15 Cr for marketing, INR 11 Cr for capital expenditure, and INR 3 Cr for inorganic growth opportunities through acquisition.

As per the RHP, Zappfresh will utilise INR 10 Cr to set up six cold storage units to be located in Delhi, Mumbai and Odisha.

Founded by former Licious founder Deepanshu Manchanda in 2015, Zappfresh operates under DSM Fresh Foods Pvt Ltd. The startup sources fresh meat directly from farms and offers delivery within 90 minutes.

While Manchanda holds the highest 37.64% stake in the meat delivery startup, the company’s other stakeholders include Rajasthan Global Securities Pvt Ltd (6.73%), Gyan Enterprises (3.81%), Hindustan Media Ventures (3.58%).

On the financial front, Zappfresh’s profit soared 94% to INR 9.1 Crin the financial year ended March 2025 (FY25) from INR 4.7 Cr in the previous fiscal year. Its top line crossed the INR 100 Cr mark, with sales rising 45% to INR 130.7 Cr from INR 90.4 Cr in FY24.

Zappfresh currently operates in five Indian states – Maharashtra, Karnataka, Uttar Pradesh, Delhi and Haryana. It gets the biggest chunk of its revenue from Karnataka, which accounted for 42.6% of its top line in FY25. It was followed by Delhi with 19.4%.

In FY25, 55% of Zappfresh’s sales were driven by chicken delivery. While sea food sales contributed INR 31.1 Cr to the company’s revenue, mutton delivery brought in the remaining INR 27.5 Cr.

Zappfresh competes with the likes of Licious, FreshToHome, Meatigo and Captain Fresh.

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