Zoff Foods Seeks Minority Stake Sale at ₹1,000 Crore Valuation
Raipur-based spice brand eyes strategic partners to accelerate growth and distribution reach.
1Strategic Stake Sale Launch
Raipur-based Zoff Foods has initiated a process to sell a minority stake to raise growth capital. The company, advised by EY, is targeting a valuation exceeding ₹1,000 crore. Discussions are currently in the early stages, with the final capital amount and specific valuation metrics expected to evolve throughout the transaction process.
2Targeting Strategic Investors
The company is actively engaging with private equity firms and major strategic players like ITC, Emami, and Orkla India. These strategics are increasingly interested in acquiring minority stakes to gain exposure to fast-growing assets. Such partnerships are viewed as a mechanism to bypass the time-consuming process of scaling these product lines organically.
3Financial Performance and Projections
Zoff Foods is projected to generate between ₹200 crore and ₹250 crore in annual recurring revenue for the current fiscal year. The company aims to achieve Ebitda-positive status by the fourth quarter. Existing investor JM Financial Private Equity, which currently holds a 20% stake, may consider divesting a portion of its holdings.
4Operational and Market Expansion
Founded in 2018 by Akash and Ashish Agrawalla, the company utilizes proprietary cool-grinding technology to preserve flavor. Recent expansion efforts include entering modern trade channels like DMart and diversifying into dry fruits and ready-to-cook gravies. The firm maintains a strong presence across major e-commerce and quick-commerce platforms, which drive significant sales.
5Capital Infusion and Growth
Asquare Foods and Beverages, the operator of Zoff, previously secured ₹40 crore from JM Financial Private Equity in 2024. A subsequent infusion of ₹18.5 crore followed shortly after to bolster brand-building and distribution networks. These funds have supported a 40% compound annual growth rate in revenue over the last four years.
6Competitive Landscape and Positioning
Zoff operates in a crowded market, competing against legacy giants like MDH Spices and Everest Food Products, alongside new-age D2C brands. The company differentiates itself through multi-layered zip-lock packaging and a focus on tier-II and tier-III town penetration. It aims to leverage its digital-first footprint to challenge established industry incumbents effectively.
7Financial Results and Filings
In FY25, Asquare reported revenue from operations of ₹102.7 crore, up from ₹92.6 crore in the previous year. However, net losses widened to ₹17.4 crore from a profit of 20 lakhs in FY24. These figures reflect the aggressive investment strategy currently being deployed to capture market share in the competitive spice sector.
8Future Strategic Outlook
Should the current funding round succeed, the company plans to utilize the capital to expand its product line and geographical reach. Management is also considering a future initial public offering as the business scales further. The induction of a strategic partner remains a critical component for securing necessary distribution access across India.
Original article: mint - companies — Zoff Foods Seeks Minority Stake Sale at ₹1,000 Crore Valuation