ZOFF Foods, a prominent brand specializing in Indian spices, has announced its intention to go public through an initial public offering (IPO) within the next 4-5 years, according to Akash Agrawal, Co-Founder of ZOFF Foods.
Having achieved INR 53 crore in revenue in the previous fiscal year, the brand now has its sights set on reaching a revenue of INR 100 crore in the current fiscal year.
“We aim to be a INR 300 crore brand by 2025-26. Currently, our EBITDA profitability stands at 12-13 per cent and net profitability at 3-4 per cent. We have been able to gain a significant market share as the spices market is constantly growing and second, it is shifting from being an unorganised market to an organised market,” he stated.
“Apart from this, in the next 3-4 years, we are also eyeing to become the 3rd biggest national player in the spices category,” he further added.
Being an e-commerce-first brand, ZOFF Foods has established its presence across all major e-commerce platforms. Additionally, in the realm of general trade, the brand has permeated 10,000 GT stores spanning 10-15 states in India.
Currently, the brand generates 60% of its revenue from e-commerce, 20% from General Trade (GT), and the remaining 20% is attributed to institutional sales and wholesale channels.
“Going ahead, as we plan to expand our presence in GT and take the total count to 15,000 GT stores by this fiscal end and 50,000 stores by the next fiscal end, we are eyeing to raise INR 50 crore in series A at the valuation of upto INR 500 crore and we are looking at diluting 15 per cent of our equity as per the valuation,” he asserted.
“Along with the expansion, we will also be using these funds for marketing,” he further added.
Before this, the brand secured INR 1 crore for a 1.25% equity stake at a valuation of INR 80 crore during its appearance on Shark Tank India – Season 2.
In October, the brand expanded its product range to include dry fruits, and by February 2024, it intends to venture into the seasonings and condiments category.
“We do not manufacture dry fruits. We have tied up with a third-party vendor. We just procure, pack, and sell dry fruits and we will be following the same strategy for seasonings and condiments,” he stated.
For the current fiscal year, the brand anticipates that 15% of its revenue will be derived from the dry fruits category.
ZOFF Foods possesses a 3-acre spice manufacturing facility located in Raipur, Chhattisgarh.
“We have utilised just 40 per cent of the total capacity of our manufacturing capacity currently and it has the potential to do business of INR 300-400 crore,” he asserted.
In October, the brand expanded into the international market by establishing a partnership with Amazon USA.
Moving forward, with a comprehensive understanding of international markets, the brand intends to expand its presence into countries such as Canada, Australia, and Europe.