SUMMARY
- D2C spices startup Zoff has secured a funding of Rs 40 crore ($4.76 million) from JM Financial Private Equity through its JM Financial India Growth Fund III.
- With this capital infusion, Zoff plans to expand its product portfolio and venture into new segments such as ready-to-cook, condiments, cooking pastes, and seasoning kits.
- JM Financial Private Equity has placed a significant bet on Zoff, aligning with its strategy to invest in growth-oriented companies within the mid-market segment.
D2C spices startup Zoff has secured a funding of Rs 40 crore ($4.76 million) from JM Financial Private Equity through its JM Financial India Growth Fund III. This investment marks the second funding for Zoff, following an initial fundraising of Rs 1 crore from boAt founder Aman Gupta in February last year.
With this capital infusion, Zoff plans to expand its product portfolio and venture into new segments such as ready-to-cook, condiments, cooking pastes, and seasoning kits. Additionally, a portion of the funds will be allocated towards enhancing its offline presence, including increasing its visibility in general and modern trade channels, as well as other retail outlets.
The expansion into offline channels is a strategic move by Zoff to better penetrate non-metro cities in India. By focusing on building its offline presence, Zoff aims to establish itself as a leading and trusted food brand across the country.
Zoff’s cofounder Akash Agrawal said, “The capital infusion and partnership with JM Financial Private Equity will help us fast-track our current and future expansion plans. Our focus is on becoming one of India’s top, trusted food brands in India.”
Asquare Foods and Beverages Pvt Ltd, the parent company of Zoff, was founded by brothers Akash and Ashish Agrawal in 2018. The Raipur-based company specializes in the ground, blended, and whole spice categories, as well as dry fruits. The company operates a fully automated manufacturing unit and a 10,000 square feet warehouse in Raipur, where it sources premium-quality spices directly from their regions of origin to ensure the highest quality.
In FY24, Zoff achieved a gross revenue of Rs 93 crore with a net profit of Rs 1 crore, marking a nearly fourfold increase from a revenue of Rs 25.79 crore in FY20. By the end of the current fiscal year, Zoff is targeting a revenue of Rs 170 crore or more, with a projected increase in repeat business by 60-70%.
Zoff has successfully scaled its presence across major e-commerce and quick-commerce platforms, achieving a 40% compound annual growth rate in its overall revenues over the last four years. It has only made some of its 100 SKUs available on these platforms.
JM Financial Private Equity has placed a significant bet on Zoff, aligning with its strategy to invest in growth-oriented companies within the mid-market segment. This investment marks JM Financial’s seventh investment in Fund III.
Darius Pandole, Managing Director & CEO of Private Equity & Equity AIFs at JM Financial, expressed confidence in Zoff’s potential to become a leading spices brand in the future. He highlighted the emerging attractiveness of the branded spices segment within the food industry.
An Avendus report has projected the organised branded spice market to reach Rs 50K crore by 2025, with blended spices expected to capture a 35% market share.
