D2C Spices Startup Zoff Nets INR 40 Cr From JM Financial PE To Scale Up Its Offline Playbook

Raipur-based D2C spices startup Zoff has secured a funding of INR 40 Cr ($4.76 Mn) from JM Financial Private Equity via its JM Financial India Growth Fund III. 

This marks the second fund infusion for the startup after bagging INR 1 Cr from boAT founder Aman Gupta in its February last year. 

The startup plans to deploy the fresh capital to launch new products and enter new segments such as ready-to-cook, condiments, cooking pastes and seasoning kits. 

The startup will also deploy part of the proceeds to strengthen its offline playbook by expanding presence on general trade, modern trade channels and other retail outlets.

By building its offline channel, the startup said that it is eyeing to better penetrate non-metro cities of India.

“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”, Zoff’s cofounder Akash Agrawal said.

Zoff’s parent Asquare Foods and Beverages Pvt Ltd was set up by Agrawal and his brother Ashish in 2018. Zoff (Zone Of Fresh Food) specialises in ground, blended and whole spice categories, as well as dry fruits.

It runs a fully automated manufacturing unit and a 10K square ft warehouse in Raipur and sources premium-quality spices directly from their regions of origin to ensure the best crop conditions.

The startup claimed a gross revenue of INR 93 Cr in FY24, nearly a 4x jump from INR 25.79 Cr in FY20. It also posted a net profit of INR 1 Cr. By the end of the current fiscal, Zoff aims to clock INR 170 Cr+ in revenue, with a 60-70% rise in repeat business.

In a statement, Zoff claims that it has managed to scale on all major e-commerce and quick-commerce platforms resulting in a 40% CAGR in the overall revenues over the last four years. Pertinent to note that Agrawal told Inc42 in July that only some of its 100 SKUs are available on ecommerce and quick commerce platforms.

JM Financial PE has made a bet on the startup as part of its strategy of investing in growth–oriented companies in the mid-market space. This is its seventh investment from its Fund III.  

“The branded spices segment has emerged as one of the most attractive categories within the food space… We strongly believe that Zoff can emerge as one of the leading spices brands in the future,” Darius Pandole, Managing Director & CEO, Private Equity & Equity AIFs, JM Financial said

An Avendus report estimated that the organised branded spice market will reach INR 50K Cr by 2025 and blended spices will have a 35% market share by then.