Raipur-based Zoff Foods is in talks to raise capital at a valuation exceeding ₹1,000 crore. While the spice brand has grown its revenue to ₹200-250 crore, investors will likely focus on its path to profitability after reporting a net loss of ₹17.4 crore in FY25. Strategic players including ITC and Emami are reportedly among the interested parties looking to enter the high-growth organized spice market.
Zoff Foods, the consumer brand owned by Asquare Foods and Beverages Pvt. Ltd, has started discussions for a new funding round that aims to value the business at over ₹1,000 crore. The spice maker is currently engaging with private equity firms and large strategic investors, including ITC, Emami, and Orkla India, to fund its next phase of expansion into tier-II and tier-III cities.
Financial Growth and Profitability Challenges
The company has demonstrated rapid top-line growth, currently reporting an annual recurring revenue of approximately ₹200-250 crore. This has been driven by a 40% compound annual growth rate over the past four years, largely supported by the brand’s strong presence on e-commerce and quick-commerce platforms. However, the company faces the challenge of high customer acquisition costs typical in the D2C segment. Recent filings reveal that Zoff Foods reported a net loss of ₹17.4 crore for the financial year 2025, a significant increase from the previous period. Management has stated that it expects the business to achieve EBITDA-positive status by the fourth quarter of this fiscal year, which will be a crucial metric for potential investors assessing the brand's long-term sustainability.
Strategic Interest in Organized Spices
The Indian spice market is undergoing a transition as consumers shift from unorganized, loose products to branded, packaged options. This trend has attracted major FMCG companies looking to expand their product portfolios. Established players like ITC, through its Ashirvaad brand, and Orkla India, which owns MTR and Eastern, are constantly evaluating acquisition or investment opportunities to gain market share against legacy giants like MDH and Everest Food Products. For Zoff Foods, this funding round is an opportunity to strengthen its supply chain and distribution network while using its proprietary cool-grinding technology as a differentiator.
Stakeholder and Market Considerations
Existing investor JM Financial Private Equity, which holds a 20% stake in the entity, may exit or reduce its holding depending on the final valuation achieved in this round. The outcome of these discussions will also set the tone for the company’s long-term plans, with the founders signaling an interest in a future initial public offering. EY is acting as the advisor for this process. As the company negotiates, the primary focus for investors will be on how effectively it balances rapid expansion with the need to stabilize its bottom line. The ability to maintain revenue growth while cutting losses will be the key monitorable for the brand as it competes with well-entrenched national players.