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NEW DELHI : DSM Fresh Foods Pvt Ltd, which runs online fresh fish and meat retailer, posted a 25% growth in revenue and narrowed its earnings before interest, taxes, depreciation and amortization (Ebitda) losses in the just-ended financial year despite the pandemic forcing a major shift in business operations.

Revenue grew to about 70 crore in the year ended 31 March from 50 crore in FY21, which was marked by flat revenue growth, said Deepanshu Manchanda, chief executive officer, Zappfresh. The revenue growth happened despite a total closure of its business-to-business (B2B) vertical that earlier contributed around 35% to its revenue, Manchanda said.

Zappfresh earned B2B revenue from hotels and restaurants but was forced to shut the business at the onset of the covid-19 pandemic in 2020. “So the entire revenue albeit remaining flat in fiscal 2020-21 came from our B2C business and all our sales happen direct-to-consumer (D2C)," Manchanda said. The Gurugram-based company’s Ebitda loss narrowed to about 2 crore in FY22 after expanding to 12 crore in FY21 from 9 crore in 2019-20.

Founded by Manchanda and Shruti Gochhwal in 2015, Zappfresh aims to achieve break even this financial year.

“We are following a low burn, high profit format," said Manchanda, who had worked at digital wallet provider MobiKwik before co-founding Zappfresh.

The company is also in the market for a Series C funding round of around $10 million. “We are currently in talks with domestic private equity and venture capital firms, as well as domestic corporates for a minority investment," Manchanda said.

The money will be used to enter the markets in south and west India. The company at present operates only in the National Capital Region (NCR) and delivers 4,000 orders daily, he said.

Zappfresh has raised under $10 million in funding so far, according to VCCEdge, the data and intelligence platform of VCCircle. It last raised around $3 million in 2019 from India Opportunity Fund, which is managed by SIDBI Venture Capital Ltd. In 2018, Amit Burman, vice-chairman of Dabur India Ltd, led a funding round, in which SIDBI Venture Capital also took part.

joseph.rai@livemint.com

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