How Indian spicy Brand Zoff Captured Investor Attention on Shark Tank India

In the 28th episode of Shark Tank India’s second season, Zone Of Fresh Food, often known as ZOFF, one of the up-and-coming companies in the Indian spice market, raised Rs 1 crore in finance. Aman Gupta, an entrepreneur and co-founder and CMO of boAt, provided cash for the firm in exchange for a 1.25 percent equity stake. Four of the five sharks on the show were interested in the brand because of its intriguing proposal, and Vineeta Singh, CEO of SUGAR Cosmetics, Aman Gupta, Amit Jain, CEO and co-founder of CarDekho, and Anupam Mittal, founder of People Group, each made an individual offer. The company, which is entirely self-funded, has raised Rs 80 crore.

The dynamic “Spice Brothers” of Raipur, Akash and Ashish Agarwal, founded ZOFF in 2018. The five-year-old firm is a trailblazer in the application of Air Classifying Mills (ACMs), a cutting-edge cool grinding technology. It is a completely automated, mechanized production facility that preserves the spices’ pungency, oil, purity, and aroma. Additionally, ZOFF has invented “Zip Lock Packaging” with four layers to keep the spices fresh and resistant to external temperature, ensuring that they are delivered in the purest form possible after grinding and retain all of their attributes until consumption.

Zoff is an exciting Direct-to-Consumer (D2C) startup in India’s spice sector that captured attention on Shark Tank India. Founded by Akash Kumar and Ashish Agarwal from Raipur in Chhattisgarh, Zoff aims to transform the spice market. During their pitch on the show, they highlighted the impressive size of the Indian spice industry, valued at ₹80,000 crores, of which a whopping 70% remains unorganized.

Click here to visit their official website: Zoff

To establish credibility, Zoff has partnered with Shilpa Shetty as their brand ambassador since the onset of their journey. What distinguishes Zoff from traditional spice suppliers is their strong focus on quality and cleanliness. They brought to light the concerning practices of many unorganized vendors who mix their spices with harmful substances such as dust, chemicals, straw, and even cow dung, which undermines the quality of the spices.

In contrast, Zoff Masala takes pride in its advanced 7-stage cleaning process, which guarantees that their spices are pure and free from any contaminants.

Related: Healthy Snack Revolution: How Green Snack Co Captured Investor Attention on Shark Tank India

During their pitch, Zoff made a bold request of INR 1 crore in exchange for a 0.5% ownership stake, which essentially set their company’s value at an impressive INR 200 crores. This valuation is supported by their strong financial results, as Zoff reported an annual revenue of INR 60 crores in the previous year. For the current fiscal year, they have optimistic forecasts, expecting to earn between INR 65 and 70 crores.

Founded in 2008, Zoff has made its products accessible through its own website and all major online marketplaces, in addition to being stocked in 10,000 physical stores. Over the past three years, they have experienced remarkable growth, with a 400% increase in their online sales. Last month, their online sales reached ₹4.5 crores while offline sales contributed ₹2.5 crores, resulting in a total turnover of ₹7 crores.

Zoff has invested ₹20 crores in their manufacturing plant, which provides jobs for about 200 employees. The founders have put in around ₹60 crores into the business and project to achieve a profit of ₹5 crores this year.

“We envisioned a revolution in the spice industry from the moment we established ZOFF,” stated Akash Agrawal, co-founder of ZOFF. We are ecstatic to have Shark Aman Gupta accompany us on this thrilling adventure. While our primary focus will continue to be on giving our clients the greatest possible spices in terms of flavor and nutrients, we will also be expanding our product line as we move along in order to better break into the Indian culinary market.

“Aman’s excellent branding and marketing skills will be very beneficial to our brand, and the money raised will be used in part to increase marketing in an effort to attract new users and grow the business,” stated Ashish Agrawal, co-founder of ZOFF. Going forward, we want to stick to our omnichannel strategy in order to keep establishing our presence in markets through both digital and physical channels.

“The remarkable growth ZOFF has experienced in such a short period of time strongly validates its product-market fit,” stated Aman Gupta, co-founder and CMO of boAt Lifestyle. Thanks to their tech-driven approach, these young Raipur residents are set to revolutionize the manufacture of Indian spices. I’m glad to be working with them to establish ZOFF as a well-known brand in the Indian spice market.

During the negotiations on Shark Tank India, Anupam expressed doubts about the Zoff founders, suggesting they were more focused on marketing than seeking genuine investment, especially since they are carrying ₹50 crores in loans, which makes their valuation seem unrealistic. The entrepreneurs insisted that they were looking for guidance rather than just money.

Anupam made a conditional offer of ₹1 crore for a 2% stake in the company, but he required that ₹18 crores of their debt be converted into equity. Aman matched Anupam’s offer but without any conditions attached. Vineeta then proposed ₹50 lakhs for a 0.75% equity stake, along with another ₹50 lakhs as a loan. Anupam eventually opted out, feeling that the entrepreneurs were not clear in their responses.

Namita also decided to step back, pointing out that there was no clear CEO in the company and that the brothers seemed to be overlapping in their conversations. Amit highlighted the importance of having a CEO and offered ₹1 crore for 1.5% of the business. After further discussion, the founders returned with a counteroffer of ₹1 crore for a 0.75% stake for all investors. In the end, Aman presented the final offer of ₹1 crore for 1.25%, and the founders quickly accepted it.

Our investigation into the company shows that the agreement with Shark Aman Gupta was successfully finalized, and the business is thriving. Since their appearance on Shark Tank, they have broadened their product offerings to include various seasonings, dried fruits, and immunity-boosting items, among others. As stated on their website, their annual turnover has surpassed ₹700 crores and continues to rise. Customers can find their products both on their official website and through major online marketplaces.

Shark Tank India showcases a dynamic platform where aspiring business owners pitch their concepts to influential investors, hoping to gain the support and resources needed to scale their enterprises.