DSM Fresh Foods Limited, operating under the Zappfresh brand, has announced its fund raising initiative through an investor presentation submitted to BSE Limited under Regulation 30 of SEBI Listing Regulations. The company is targeting a fund raise of approximately ₹100 crore with a proposed timeline of Q2 FY27.

Strong Financial Performance in H1FY26

The company demonstrated robust financial performance in the first half of FY26, establishing itself as India's first profitable D2C fresh protein platform. The integrated farm-to-fork fresh food platform reported comprehensive growth across key financial metrics.

Strategic Fund Utilization Framework

The proposed ₹100 crore fund raise will be deployed across four strategic pillars to accelerate the company's growth trajectory and market expansion.

Capacity and Retail Expansion

The company plans infrastructure upgradation across existing facilities while scaling retail footprint to drive branded presence. The focus remains on improving throughput, efficiency, and unit economics across operations.

Aquaculture Expansion

Incremental investment in aquaculture projects will enhance backward integration and supply security. This initiative is expected to be margin accretive with better control over raw material sourcing, particularly for the seafood segment which contributes approximately 20% of current revenue.

Working Capital Support

Funding will support higher inventory and receivables cycle requirements, enabling scale-up in operations and distribution while ensuring smooth execution of the growth pipeline.

Inorganic Growth Opportunities

Strategic acquisitions will accelerate market entry and capability expansion, with focus on adjacencies and value-added segments through opportunistic, ROI-driven deployment.

Operational Scale and Market Presence

DSM Fresh Foods operates through an omni-channel distribution model encompassing D2C app and website, B2B HoReCa partnerships, and retail stores. The company maintains three advanced meat processing facilities with end-to-end automation and multi-category manufacturing capability across Frozen, RTE, and RTC products.

Revenue Diversification and Growth Strategy

The company's revenue split in H1FY26 shows balanced distribution between B2C (52%) and B2B (48%) channels. The business demonstrated exceptional growth with 52% revenue CAGR from FY23-25 and 82% PAT CAGR during the same period.

DSM Fresh Foods projects revenue diversification beyond its core Zappfresh business by FY28, with emerging category Meevaa Foods expected to contribute 16% of revenue and new geographies contributing 6%, while the core business maintains 78% share.

Leadership and Strategic Vision

Under the leadership of Managing Director Deepanshu Manchanda, who brings over 15 years of techno-commercial experience and previously held management roles at Mobikwik while co-conceptualizing Licious, the company has established itself as a profitable platform in the competitive fresh food market. Manchanda's appointment as Goodwill Ambassador by IIMSAM reinforces the company's credibility in nutrition security and sustainable food systems aligned with United Nations Sustainable Development Goals.

DSM Fresh Foods Limited has announced the incorporation of a new subsidiary company to expand its operations into the aquaculture and seafood sector. The board meeting, held on 17th March 2026, approved the establishment of Varuna Aquatech Private Limited as a strategic move to capitalize on growth opportunities in the aquaculture and allied business sector.

Board Meeting Outcomes

The Board of Directors meeting commenced at 11:24 AM and concluded at 11:32 AM on 17th March 2026. The primary agenda focused on the incorporation of the subsidiary company and approval of its share capital structure. The decision aligns with the company's strategy to undertake focused operations with optimum utilization of resources in the expanding aquaculture market.

Subsidiary Structure and Shareholding

The newly approved subsidiary, Varuna Aquatech Private Limited, has been structured with specific capital requirements and shareholding distribution:

Business Focus and Objectives

Varuna Aquatech Private Limited will operate in the aquaculture, fisheries, and food processing industry. The subsidiary's primary objectives include:

• Carrying on aquaculture and fisheries operations
• Processing and trading of seafood products
• Export activities in the seafood sector
• Allied activities related to aquaculture business

The incorporation represents DSM Fresh Foods' expansion strategy into specialized segments of the food processing industry, particularly focusing on seafood and related activities.

Regulatory Compliance

The company has fulfilled all necessary regulatory requirements for the subsidiary incorporation. The name "Varuna Aquatech Private Limited" has been duly approved by the Registrar of Companies. As per SEBI regulations, the subsidiary will be considered a related party of DSM Fresh Foods Limited once incorporated, with share subscription occurring at arm's length pricing.

Strategic Implications

The establishment of this subsidiary demonstrates DSM Fresh Foods' commitment to diversifying its operations within the food sector. By focusing on aquaculture and seafood processing, the company aims to tap into the growing demand for seafood products and expand its market presence beyond its current operations. The majority shareholding of 71% ensures strategic control while allowing for partnership participation through the minority stakeholders.