Zoff Foods Eyes ₹1000 Cr Valuation in Funding Round

JM Financial-backed Zoff Foods is reportedly exploring a minority stake sale to secure growth capital, with discussions aiming for a valuation exceeding ₹1,000 crore. The company has appointed EY as its financial advisor for this transaction, which is currently in its early stages.

Zoff Foods plans to utilize the fresh capital to enhance its product offerings and expand its geographical presence. Strategic investors like ITC, Emami, and Orkla India are being considered, potentially providing crucial distribution access. The company expects to achieve approximately ₹200-250 crore in annual recurring revenue this fiscal year and become Ebitda-positive by the fourth quarter.

Founded in 2018, Zoff Foods has rapidly grown into a prominent Indian spice brand, known for its cool-grinding technology and diverse product range. The company has expanded significantly into modern trade, e-commerce, and quick-commerce platforms, achieving a 40% compound annual growth rate over the past four years. Investors are attracted to its fast-growing assets and potential for organic scaling.

Recent financial filings indicate that in FY25, Asquare Foods and Beverages Pvt. Ltd., which operates Zoff, reported revenues of ₹102.7 crore but a net loss of ₹17.4 crore. The company's existing investor, JM Financial Private Equity, which holds a 20% stake, may sell a portion of its holding if the valuation proves attractive. Following this potential funding round, Zoff Foods may consider an initial public offering.