Chennai-based GFM Retail Pvt Ltd, which runs meat and seafood startup TenderCuts, has launched its new venture HappyChops to enable local meat shops list their products on the platform.
The marketplace, launched two months ago as a pilot project, is currently present across 100 pockets in Chennai.
“In the next two quarters, we want to reach 10 cities. Right now, we have about 100 locations and want to get to about 600-800 locations in the next six months,” according to Nishanth Chandran, founder and chief executive officer at TenderCuts and HappyChops.
The focus will also likely be on tier II cities, he added.
It has so far, clocked about Rs 50 crore in ARR (annual revenue run-rate), with a revenue of about Rs 5 crore in January and about Rs 2.5 crore in December, the month of its launch.
The company makes a platform fee of about 8% per order, along with product margin from the supplies made to the local meat shop owners listed on the marketplace. To facilitate partnerships with local meat shop owners, HappyChops offers enterprise resource planning software, customer relationship management, point of sale platform and automated customer support to the listed shops.
Chandran also claimed that HappyChops is already EBITDA (earnings before interest, tax, depreciation, amortisation) positive.
“The marketplace also gets an edge for product supplies by leveraging its existing network from TenderCuts and economies of scale,” he added.
Launched in 2016, TenderCuts offers ready-to-eat and ready-to-cook products such as sausages, kebabs, shawarmas, pickles among others, besides enabling users to order meat and seafood online, including eggs, and is focused in the southern India market with its 50 stores in Bengaluru, Hyderabad, and Chennai.
In 2021, the meat and seafood delivery platform raised about Rs 30 crore in debt funding round from Stride Ventures. The proceeds were deployed to fuel its geographical expansion plans.
In the same year, it raised about Rs 110 crore in a round led by homegrown private equity firm Paragon Partners. Nabventures also participated in the round.
TenderCuts competes with the likes of Licious, FreshtoHome, Zappfresh, among others.
