D2C Meat/Fish Grocery

Industry Analysis
Market Overview: D2C Meat / Fish Groceries
(India)
Organized Meat/Fish Market
(5%) Bargaining Power of Suppliers -
Unorganized Meat/Fish Market (95%) LOW
• After initial training and
Challenges: orientation, suppliers can be used
Unorganized
• Inadequate slaughterhouse hygiene interchangeably.
Sector Bargaining Power of Buyers -
measures
• Lack of surveillance of meat-borne
Organized LOW
diseases
Sector • Customer base geographically
• Little or no veterinary ins pection dispersed.
• Dominated by informal market • Switching Costs subjective,
intermediaries who exploit the organizations can raise the same
producers. by increasing quality & improving
customer experience.
D2C Meat/Fish Groceries
Threat of Substitutes - HIGH
D2C Meat/ Fish Grocery Industry aims to solve problems in the
unorganized Indian Meat/Fish Industry by leveraging technology to • 95% market unorganized,
provide quality assurance, correct weight, nutritional value, and substitutes available at cheaper
simultaneously ease the procurement process. rates. Organizations can reduce
(USD - mln) (USD - mln) the same by providing value for
2027 2027
D2C meat/fish grocery money.
Revenue: Fish Industry

companies in India are Competitive Rivalry - HIGH

Revenue: Meat\Fish

CAGR radically changing the

Industry (India)

10.87
CAGR unorganized meat/fish sector
%
20.91 and gaining a rising segment • High competition, can be reduced
% of the market by providing by creating a sustainable
(India)

202 competitive advantage.

consumers with high-quality
3
meat/fish products that are
2023 clean, hygienic, and easy to Threat of New Entrants - HIGH
acquire. This presents a
significant opportunity for • No entry barrier except
investors who are looking to substantial capital and resource
capitalize on the growth investment.
potential of the D2C www.statista.com
 Market Outlook
Short Term Medium Term Long Term
Rapid urbanization Supply chain innovations Increasing awareness w.r.t. organic fo
Increasing awareness w.r.t. Changing customer preference Increasing awareness w.r.t. veganism
quality High Competition Demand for plant based meat
High Competiton Increasing E-commerce Climate change
Increase in disposable income penetration Consolidation of the Industry
Digital adoption

Competitive Landscape Key Success Factors

ZappFresh Supply Chain Efficiency
$9.48m funding till Fipola • Improved quality is closely related to the supply
date $12.8m funding till
TenderCuts date chain at the back end. In order to reduce the lead
$29.1m funding till time from farm to fork.
date
Technological Innovation
Fresh2Home • By putting a focus on AI & data analytics, demand
$232m funding till can be forecasted and technology enabled quality
date checks may be implemented to improve the supply
chain and reduce lead time.

Quality & Hygiene

• As Indian consumers become more health-
Licious Meat conscious and environmentally aware, the demand
$490m funding till for organic and sustainable meat/fish products is
date likely to increase
Customer Experience
Meatigo
• This includes the ease of use of the online
Bootstrapped
platform, the quality of customer service, and the
speed and reliability of delivery.

www.traxcn.com
Sustainable Competitive Advantage
Competitive
The D2C Meat & FishLandscape
Sector in India is incredibly competitive. Both Licious and Fresh2Home offer their
consumers the convenience of home delivery along with fresh, high-quality meat and seafood products that are
guaranteed to be safe and hygienic. Both companies' value propositions are similar in nature. The subsequent
metrics and how an organisation can differentiate itself by developing a sustainable competitive advantage would
have a significantly impact on their respective market share in the future.
Sustainable Competitive Advantage

Operational Efficiencies High Perceived Quality/Innovative Solutions

(Examples) (Examples)
Technology & Innovation Ready to eat meals
• Using AI, Data Analytics solutions to reduce lead time, • For D2C meat/fish businesses, RTE meals can be a
improve quality, and increase customer retention. valuable offering since they give customers
convenience and variety.
Supply Chain Improvements Plant Based Meat
• Implement comprehensive strategies for supply chain • D2C meat/fish providers that provide plant-based
management that emphasizes on improving visibility, solutions can appeal to this expanding market of
inventory control, logistics, and distribution to reduce environmentally conscientious and health-sensitive
lead time and cost. consumers.
Investments to Improve Quality
Optimize production processes
• As customer awareness increases, their expectations for
• Lean production methods can be used to increase
product quality, delivery times, and customer service
overall production efficiency by locating and
may also increase. Companies should invest in
eliminating unnecessary operations.
improving the perceived quality of the product to better
differentiate themselves.
Licious Licious
• Propreitory AI Technology for quality control • India's first meat & seafood brand with the FSSC
• AI technology to help train the meat/fish technicians to 22000 certification.
master precise cuts • Strict checks and mandatory training for procurement
• Leveraging technology to forecast demand team
• Strong supply chain with trained procurement team • Pledge to be ESG compliant in 12 months
Fresh2Home • Innovative variety of marinated meat, spreads, cold cuts
• IoT-based inbuilt sensors for temperature control etc. available.
• Innovative AI based bidding procurement system where Fresh2Home
app reads the fish based on neural network training that • Over 120 quality control checks
detects the kind of produce. • Innovative variety of marinated meat, spreads, cold cuts
• Strong supply chain etc. available.
 Licious Fresh2Home
Bangalore-based, founded in 2015 Bangalore-based, founded in 2015
Licious
About Founders: Abhay Hanjura and Vivek Gupta Founders: Shan Kadavil and Mathew Joseph

Funding till date: $490m Funding till date: $232m

End-to-end supply chain model. The company FreshToHome’s platform uses AI-based
Supply sources its products directly from farmers and technology (called Commodities Exchange) that
fishermen, and it has its own processing allows fishermen or farmer to electronically
Chain facilities where the products are cleaned, cut, auction their produce – this is the primary way
and packaged. in which their supply chain is crafted.

Company Stage Series F Company Stage Series D

Funding & Unicorn Rating Unicorn Unicorn Rating Soonicorn
Investors
Investor Count 65 Investor Count 82

CLV 28 Indian cities CLV 150 Indian cities

Operations Churn Rate 10% Churn Rate Not Available

CAC* Not Available CAC Not Available

Revenue (2021) 420.3 Cr Revenue (2021 ) $ 8.96 M

Financials EBITDA (2021) -43.31% EBITDA (2021) -191.61%

Unit Economics Rs 1.53 Unit Economics $ 3.38

D/E Ratio* Not Available D/E Ratio Not Available

Ratio ROI* Not Available ROI Not Available

Market Share* Not Available Market Share Not Available

Entracker.com
*Annexure 1
Valuation Analysis: Based on Benchmarks

Trading Comparables Transaction Comparables

As per the Efficient Market Hypothesis at any given Widely use this method to value a company during an
time, stock prices fully reflect all available acquisition. Technically this method is similar to
information on a particular company and industry. trading comps and uses multiples such as P/E,
Therefore trading companies provide the best EV/EBITDA, EV/Sales, P/B, etc. But the comparables
estimate for valuing a similar company. Average used are companies which have previously undergone
multiples such as P/E, EV/EBITDA, EV/Sales, P/B, a takeover, rather peers which trade on the stock
etc. are calculated from all companies similar to the market. Takeovers generally value the company
one being valued and the same used to calculate its higher because of a control premium paid by the
enterprise value. acquirer. Unfortunately, in this industry there weren't
any transactions which publicly disclosed the
transaction details. Hence this method has been
Trading Comparables ignored.

Enterprise Value
Company Revenue (TTM) EBITDA (TTM) EV / Revenue EV / EBITDA
(EV)

ZappFresh - - - - -
Fipola - - - - -
TenderCuts - - - - -
Median (xxx) (xxx)

Transaction Comparables (in INR Cr)

Acquirer / Target EV (in INR EV/
Date Target EV/ EBITDA
Investor Description Cr) Revenue
- - - - - - -
Median
(xxx) (xxx)
Unpublished financial data for businesses in the Indian D2C meat/fish grocery industry restricted the
use of appropriate benchmarks. India’s market is largely unorganized with comparatively higher growth
potential than companies located outside India, therefore they have not been considered for this
Exit IRR Analysis

Assumptions
• Initial investment: $50m for 10% stake
• Investment made in single tranche
• Exit Period: 5 years
• Exit Valuation: $2b
• Additional equity raise of 100 m will result in dilution of our stake from 10% to 5.12%
• Competition dynamic constant with current market conditions

Proceeds from 5.12% stake:

Exit Proceeds: $102.4m
Initial investment: $50m
IRR: 15%
Annexure 1:
CAC - For D2C meat/fish grocers in India, CAC is a crucial statistic because it can be used to
assess the feasibility of the company, anticipate revenue and growth, and optimize client
acquisition strategies.

Debt Equity Ratio- For a D2C meat/fish grocery business in India, monitoring the D/E ratio is
crucial since it offers critical information about the firm's financial health, liquidity, funding,
and development potential. The business may decide on its financial plan and set itself up for
long-term success by closely monitoring this indicator.

ROI- ROI is a crucial indicator for a D2C meat/fish grocer in India because it aids in assessing
the ROI of the company's investments and spotting areas for growth.

Market share – Market Share is a crucial indicator for D2C meat/fish grocery firms in India
since it can be used to compare performance to rivals, spot growth potential, and gauge the
state of the sector in which a company operates.
ANNEXUR