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With India’s meat retail market still largely fragmented and unorganised, Zappfresh is pursuing an alternative route to offline growth by partnering with existing neighbourhood meat retailers rather than investing heavily in company owned stores.
Nearly 95% of India’s estimated $55 billion meat market remains unorganised, creating a significant opportunity for organised players as consumers increasingly seek better hygiene, quality and consistency. Zappfresh aims to leverage this opportunity by scaling its network of partner stores to 500 during the current financial year, more than doubling its existing base of around 200 retail partners.
The company is developing an asset light, supply chain enablement model designed to equip independent retailers with products, infrastructure and operational support. Instead of owning the retail footprint, Zappfresh works with existing merchants and manages key elements of the backend supply chain.
The initial focus is on building greater market density in Mumbai and Bengaluru over the next one to two years. The company plans to enter additional markets after establishing stronger local ecosystems, which it believes can deliver greater operational efficiencies than pursuing rapid geographic expansion.
Through its partnership model, Zappfresh supplies products, standardises quality and pricing, broadens product assortment and assists retailers with infrastructure upgrades, including refrigeration and hygiene facilities. This enables partner stores to concentrate on customer interaction and sales while Zappfresh manages a significant portion of sourcing and supply chain operations.
According to the company, supply chain inefficiencies remain a bigger challenge for the meat retail industry than consumer demand. Zappfresh is therefore also working to improve retailer economics by expanding the range of products available through partner stores.
The company’s assortment includes ready to eat products and complementary categories, allowing traditional meat retailers to move beyond their core offerings. While many neighbourhood shops focus primarily on chicken, fish or mutton, a wider assortment can encourage customers to purchase more products during each visit.
Zappfresh currently offers nearly 150 SKUs, with product mixes tailored to the size and capabilities of individual partner outlets. Merchant onboarding is selective, with potential partners assessed against more than 30 parameters, including business history, sales performance, market checks and reference verification.
The average partner store generates around ₹4–5 lakh in monthly revenue. Zappfresh earns through product sales rather than a revenue sharing arrangement, positioning the company as a supply chain and business enablement partner rather than a conventional franchise operator.
The model also provides Zappfresh with a relatively capital efficient route to expanding its offline presence without owning physical stores. As the partner network reaches greater scale, the company plans to selectively integrate its online proposition through identified partner outlets.
At present, B2B operations account for around 70% of Zappfresh’s business, with the balance coming from direct consumer sales.
As organised food retail gains momentum, Zappfresh’s partnership led strategy reflects a broader shift towards using technology, supply chain capabilities and retailer enablement to address inefficiencies in India’s fragmented meat retail sector. By leveraging existing neighbourhood stores, the company aims to build a scalable offline network while creating additional growth opportunities for independent retailers.
