Delhi-based online meat delivery brand Zappfresh has acquired Mumbai-based Bonsaro, a company specialising in delivery of poultry, goat, and seafood, in an all-cash deal, as it expands its presence in the region.
As a part of the deal that marks Zappfresh's second acquisition till date, Bonsaro’s operations and business, including all its assets, will be controlled by Zappfresh, the company said in a statement, without disclosing the financial details.
The acquisition will allow SIDBI-backed Zappfresh to serve a larger customer base, and establish itself as a leading player in the direct-to-consumer meat market in western India. The startup aims to scale up Bonsaro’s operations and product offerings, and enter into newer markets such as Navi Mumbai, Pune, and other satellite towns, within the next year.
“By integrating Bonsaro into our portfolio, we are poised to build a pan-India brand that operates in key markets. Mumbai, being a critical market, will contribute significantly to our footprint in the west,” said Deepanshu Manchanda, the founder of Zappfresh.
Manchanda, launched Zappfresh along with 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.
About a year back, Zappfresh had acquired Bengaluru-based Dr. Meat, owned by Sukos Foods for about $3 million, allowing it to expand its footprint in the Southern region.
“Our expansion strategy remains disciplined—we expand one city at a time, ensuring profitability without compromising our bottom line. We only venture into new markets once we achieve break-even,” he added.
The startup is targeting to end the current year with a revenue of Rs 160 crore. In FY2023, it reported Rs 56 crore of operating revenue, with a net profit of Rs 11.17 crore, according to its latest available financials sources by VCCEdge.
The startup raised it Series C round last year in November, securing $4.3 million from Ah! Ventures, HT Media, Unity SFB and Heifer Impact.
In 2015, Zappfresh raised Rs 2 crore in an 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.