Even as regulations threatened to end its IPO dream, Zappfresh remained steadfast to its belief that it will become India’s first profitable meat delivery startup to list publicly.

Zappfresh filed its draft papers for a public float on August 27 for listing as a small and medium enterprise (SME). But for six months after it filed the draft red-herring prospectus (DRHP), the startup remained silent on the issue. “A lot has happened since then,” founder and chief executive Deepanshu Manchanda told Inc42.

The Securities and Exchange Board of India (SEBI) tightened the IPO rules for SMEs last December and brought in a host of changes aimed at protecting investor interests and enhancing market integrity. It mandated an earnings before interest, depreciation and taxes (EBITDA) of over INR 3 Cr for at least two out of three financial years preceding the application for a public issue.

“The IPO process has turned a bit lengthier. As of now, the follow-up process with SEBI is underway. We would intimate the timeline for the IPO shortly after that process is done. I anticipate Zappfresh to become a listed entity within 2025,” Manchanda added.

According to him, the company is eyeing a fresh capital raise of INR 60 Cr to INR 70 Cr from the public issue. Manchanda reiterated that Zappfresh is the only startup to be making profits in the meat delivery space.

Its net profit for the fiscal 2023-24 (FY24)

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