D2C Startup ZOFF Foods Eyes IPO In Next 4-5 Years
ZOFF Foods is an online spices store that is pioneering the use of state-of-the-art Air Classifying Mills (ACMs). ZOFF offers a diverse range of premium masalas (spices), bringing great flavours and nutrients to kitchens across India. In its products ZOFF Foods prioritises both health and a flavourful taste.
Founded by Akash Agrawal and Ashish Agrawal, the startup’s offerings include masalas, dry fruits, seasonings, whole foods and immunity boosters, ranging from vegetarian to non-vegetarian blends.
Heritage
Zoff Foods is part of Asquare Food & Beverages, which is a part of the ASquare Group. The group has a presence in diverse sectors such as steel, technology, food and trading.
Zoff Foods plans to go public with an initial public offering (IPO) over the coming four to five years. At present, 60 per cent of its revenue comes from ecommerce, 20 per cent from general trade (GT) and the remaining 20 per cent from institutional sales and wholesale trade.
ZOFF Foods is committed to ensuring that approximately 60 per cent of its workforce comprises women and that differently abled people also have representation among workers. ZOFF recently got featured on Disney + Hotstar, which proved a milestone for the spice marketing startup.
As of 2023 the size of the Indian spices market is estimated to be worth Rs 1,80,760 crore. Industry sources anticipate a substantial expansion of the market, which is projected to grow to a size of Rs 4,70,339 crore by 2032. So, for startups like ZOFF, a vast market is waiting to be explored and the company has the option of going global over the coming years.
Funding
Zoff Foods has raised USD 121,000 in an angel round of funding on 9 February, 2023, led by Aman Gupta. The startup has only had one seed round of funding till date.
To uphold the quality and safety benchmarks of Indian spices, the government has established spices parks and testing laboratories nationwide. These initiatives facilitate processing, grading, and quality certification of spices.
Major players in the spices market now employ a myriad strategies to fortify their positions and stay competitive. Through substantial investments in research and development (R&D), ZOFF aims to innovate and introduce novel spice blends, formulations, and value-added products. This approach, featuring unique and varied spice offerings, attracts a broader consumer base and addresses evolving preferences.
The company needs to actively engage in promotional activities, including advertising, endorsements and social media campaigns, to enhance brand awareness and establish a robust brand equity. Among the key players in its market segment are Badshah Masala, Patanjali Ayurved Limited, Everest Food Products and Mahashian Di Hatti. These brands have a global presence.
Even so, Zoff Foods’ unique approach to spices production, its commitment to quality and innovative use of technology, however, gives it a distinct advantage in the Indian spices market.
