JM Financial-backed ZOFF Foods looking to raise Rs 150 crore for offline expansion

ZOFF Foods plans to double down on the ready-to-cook segment.

JM Financial-backed packaged spices and seasoning company ZOFF Foods is looking to raise Rs 150 crore in the coming months, amid plans to scale into the ready to cook segment while also expanding sales in the offline channels, co-founder Akash Agrawalla told Moneycontrol.

The company, which currently generates about 60 percent of its revenue through online channels, is ramping up general trade and modern trade operations to tap into wider domestic demand. It is already present in 200 Reliance Retail stores and is aiming for a pan-India presence through the chain’s 4,000+ outlets in the coming months.

“We want to expand strongly in GT (general trade) and MT (modern trade), and that will require fresh investments. The last fundraise with JM Financial was around Rs 40 crore. This time, we are looking to raise Rs 100-150 crore,” Agrawalla said.

ZOFF is also targeting a topline of Rs 200 crore in FY26, after closing FY25 with Rs 110-120 crore in revenue. While the company had initially aimed to reach Rs 160 crore in FY25, delays in fundraising and team expansion slowed down offline execution, Agrawalla said.

“The fundraising, which was earlier planned for March, eventually got delayed to August 2024. So we couldn’t scale up the offline side in time. Still, we expect to bounce back and cross Rs 200 crore this year,” he added

The company also launched a ready-to-cook segment with Reliance Retail, claiming to be the first in India to offer preservative-free products in this category. The pack includes dry ingredients while allowing customers to add fresh items like paneer or chicken, cutting prep time down to five minutes. The ready-to-cook segment is being currently tapped by FMCG conglomerates like ITC ltd after seeing significant growth in the segment, fueled by increasing demand for convenience and busy lifestyles.

“Today’s consumers want convenience without compromising on freshness. Our ready-to-cook products use no preservatives and can be prepared in five minutes with fresh ingredients. It’s a huge opportunity we’re tapping into,” he said.

ZOFF has also built a strong play in whole spices, a segment it believes is underpenetrated and highly unorganised. Around 50 percent of its business currently comes from this category.

So far, ZOFF has served over 2 million consumers, and has doubled its e-commerce business compared to FY24. The company does not plan to go public for the next 3–4 years, Agrawalla said, and is instead focused on growing via differentiated product innovation, convenience-led positioning, and deepening offline presence.

“We are a growing brand. Urban Gen Z and millennial consumers are our core audience, and we believe the behaviour shift towards quality, convenience, and trusted brands is just getting started,” he said.

(Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)