Zappfresh IPO To Open for Subscription On September 26

Zappfresh has filed its red herring prospectus (RHP) with the BSE SME platform. The company will launch its initial public offering (IPO) on September 26, which will remain open until September 30, 2025. The issue consists entirely of a fresh issue of 59.06 lakh equity shares.

Share Allocation

Of the total issue, 3.31 lakh shares, or 5.6%, have been reserved for market makers, while 55.75 lakh shares will be offered to the public. SME IPO regulations require a minimum 5% reservation for market makers.

Planned Fund Utilisation

The company has outlined that ₹25 crore from the IPO proceeds will be directed towards working capital needs. Another ₹15 crore has been allocated for marketing, with HT Media Platform contracted for the same. A sum of ₹10 crore is earmarked for 6 new cold storage facilities to be set up in Delhi, Mumbai, and Odisha. The company also intends to use part of the proceeds for acquisitions.

Zappfresh Financial Performance

In FY25, Zappfresh recorded a profit after tax of ₹9.1 crore, compared to ₹4.7 crore in FY24, marking a 94% increase. Revenue grew 45% during the same period, reaching ₹130.7 crore in FY25 against ₹90.4 crore in the previous year.

Company Background

Founded in 2015 by Deepanshu Manchanda, Zappfresh operates as a meat delivery platform sourcing directly from farms. Manchanda, who previously co-founded Licious, holds a 37.64% stake in the company. Other investors include Rajasthan Global Securities (6.73%), Gyan Enterprises (3.81%), and Hindustan Media Ventures (3.58%).

Expansion Moves

While Delhi remains its core market, the company has been expanding into other regions. It entered Bengaluru in 2023 through the acquisition of Dr. Meat and extended its operations to Mumbai in July 2024 via a business transfer agreement with Bonsaro.

Conclusion

The IPO, scheduled for September 26 to 30, 2025, will raise funds to support Zappfresh’s working capital, marketing, acquisitions, and infrastructure expansion.

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