Indian spice brand Zoff Foods recorded a 71.97% jump in revenue in FY24, reaching Rs 92.66 crore, compared to Rs 53.88 crore in FY23. However, profit margins tightened significantly, with net profit dropping to Rs 20.27 lakh in FY24 from Rs 1.74 crore in FY23, representing an 88.36% decline.
Founded in 2018 and headquartered in Raipur, Zoff Foods is a Direct-to-Consumer (D2C) spice brand that offers spices, dry fruits, and whole foods. The company is renowned for its cold grinding technology, which preserves flavor, and its innovative multi-layered packaging to ensure freshness. While it primarily operates online, Zoff is aggressively expanding its footprint into tier-II and tier-III cities.
Expenses grew 74.83% in FY24, rising to Rs 91.32 crore from Rs 52.24 crore in FY23, aligning with the company’s rapid scale-up. Notably, the cost of materials accounted for the largest share of expenses at 65.79% in FY24, up from 64.72% in FY23. Advertisement costs increased significantly as a percentage of expenses, climbing to 4.41% in FY24 from 1.87% in FY23, indicating greater investment in brand visibility. Employee benefit costs slightly decreased, making up 4.85% of expenses in FY24 compared to 5.03% in FY23.
Depreciation and finance costs also trended lower as a percentage of expenses, at 2.13% and 5.67% in FY24, respectively, compared to 4.01% and 6.64% in FY23.
EBITDA margin slipped to 9.15% in FY24 from 13.38% in FY23, reflecting higher operational costs. However, Return on Capital Employed (ROCE) saw a marked improvement, rising to 24.89% in FY24 from 14.03% in FY23, signaling better capital efficiency.
Zoff Foods is co-founded by Akash Agrawal and Ashish Agrawal, who each hold a 26.23% stake in the company. The company has raised a total of Rs 41.22 crore across two funding rounds, with the latest round, a seed round, completed in August 2024.