Zappfresh, a direct-to-consumer meat delivery and processed foods company, has approved the acquisition of a 51 percent stake in Avyom Foodtech Private Limited. The transaction will be carried out through a private placement worth Rs 7.5 crore, according to a board resolution passed by Zappfresh.
The acquisition is expected to be completed over a period of three to nine months, subject to customary conditions. Following the transaction, Avyom Foodtech will operate as a subsidiary, with capital being infused in phases as outlined in a business transfer agreement between the two companies.
The move marks Zappfresh’s entry into the ready-to-cook and ready-to-eat food segments, expanding its offerings beyond fresh meat and seafood. The company has been looking to diversify its portfolio as part of its next phase of growth.
Portfolio Expansion
Avyom Foodtech was founded in 2022 and is engaged in the manufacturing of frozen and ambient food products. Its range includes snacks, gravies, sauces, and other allied preparations designed for both retail and institutional customers.
As part of the transaction, Avyom Foodtech has entered into a binding agreement to acquire the food processing business of Ambrozia Frozen Foods through a slump sale. This acquisition is expected to add manufacturing capacity and an established product portfolio to Avyom’s operations.
Ambrozia Frozen Foods operates an export-compliant and FSSAI-approved food processing facility with an installed capacity of about 15 tonnes per day. The facility supports a wide range of frozen and ready-to-use food products.
The product portfolio being added through Ambrozia includes more than 150 stock keeping units. These span breakfast items such as idli, medu vada and dosa fillings, along with snacks like kebabs, momos, rolls, samosas and burger patties.
The range also includes Indian fritters such as pakoda and onion bhaji, as well as gravies, breads and sauces used by foodservice operators. This breadth is expected to support Zappfresh’s plans to scale its presence in the processed foods segment.
Ambrozia Frozen Foods serves institutional clients and quick-service restaurant operators, including Hyperpure, Faasos, Jubilant, Demand Planner and Al Kabeer. It also exports products to markets such as Canada, the United Kingdom and the United Arab Emirates.
Financial Snapshot
For the financial year ended FY25, Ambrozia Frozen Foods reported a turnover of around Rs 13 crore. In earlier years, the company has recorded peak revenues of approximately Rs 16 crore, indicating steady demand from both domestic and export customers.
Zappfresh has been pursuing an acquisition-led growth strategy to strengthen its supply chain and product offerings. Prior acquisitions include Mumbai-based meat and seafood delivery brand Bonsaro and the Dr Meat brand operated by Sukos Foods.
The latest transaction is aligned with this approach, allowing Zappfresh to add manufacturing capabilities and enter adjacent food categories without building operations entirely from scratch.
Zappfresh currently operates in the Delhi-NCR and Bengaluru markets and has recently listed on the BSE SME exchange. Following its listing, the company revised its IPO capital utilisation plan to allocate a higher proportion of proceeds towards acquisitions.
The focus on inorganic growth is intended to support faster expansion, product diversification and access to established customer segments. The proposed acquisition of Avyom Foodtech is expected to play a role in this strategy as Zappfresh looks to build a broader food platform.
With consumer demand for convenient food options rising, the company is positioning itself to tap into the ready-to-cook and ready-to-eat segments while continuing its core fresh meat business.
