Zoff is a spice brand in Central India with cool grinding technology. It comes in unique zip lock packaging made in proper lab facilities. Zoff boasts high quality without any adulteration.
More About Zoff
The spice market size is INR 80,000 crore. However, 70% of the sector is still unorganized. Therefore, the most adulterated food product is spices. To change this, Akash and Ashish founded Zoff. Akash manages online sales and finances. Ashish handles offline sales, operations, and logistics of the plant.
To build trust, Zoff introduced Shilpa Shetty as their brand ambassador.
Zoff spices are available on their own website, marketplaces like Flipkart & Big Basket, nearly 10,000 retail stores, and HoReCa. They aim to place themselves in India’s top five spice brands in the next five years and become the number one online spice player.
Raipur is a steel hub, and both Akash and Ashish also come from a steel background. Ashish was studying MDH’s turnover for 2018 when he realized that they made INR 400 crore net profit out of INR 900 crore revenue. They focused where traditional brands were not focusing, i.e., online.
Their plant uses cool grinding technology to retain the nutrients. Secondly, they have a no-dust system and no hand-touch system to maintain hygiene. They also implement a seven-stage cleaning system for raw materials.
Zoff has a proper roasting facility so that certain spices can release an aroma. They have an in-house cold storage facility to store raw materials.
Zoff Shark Tank Pitch and Updates
Akash Agrawal & Ashish Agrawal appeared on Shark Tank India Season 2, Episode 28, seeking INR 1 core for 0.5% equity at a valuation of INR 200 crore.
Zoff experienced 400% growth in online selling in the last three years. The month before they appeared on Shark Tank India, their sales were INR 4.5 crore online and INR 2.5 crore offline. Their profit was around INR 70-80 lakhs. Their projected net profit for FY 22-23 was INR 5-6 crore.
They have invested around INR 20 crore in their plant. Their plant is 40,000 sq ft on a 3-acre land with 200 employees. Their total investment is INR 30 crore, with INR 20 crore as a term loan and INR 8 crore as working capital.
Their equity is INR 12.5 crore, and INR 17.5 crore as unsecured loans. Hence, the total capital employed is INR 60 crore.
Their pitch started off pretty well, but things went astray when Namita asked who the company’s CEO was. To which both brothers replied they didn’t think about it. Anupam told them they only came for the marketing and did not want any investment as Zoff needed to pay their loans of INR 50 crore for the next 10 years.
However, Anupam made a conditional offer. He would give INR 1 crore for 2% equity at a valuation of INR 50 crore if their father’s INR 18 crore debt converted into equity.
Namita asked them whose decision was final among the two. Ashish said his decision would be final, but it seemed Akash couldn’t agree to that.
Next, Vineeta asked if they were trying to raise funds in the market. Ashish replied they would try after reaching the INR 100 crore mark, and they had INR 1 crore in the bank at that time.
Their working capital, including stock, debt, and FG, was around INR 11-12 crore. Aman also offered them INR 1 crore for 2% equity at a valuation of INR 50 crore with no conditions. Vineeta also chimed in with an offer of INR 50 lakhs for 0.75% equity at a valuation of 66.67 crores and 50 lakhs as debt.
Anupam decided to step back from his offer as he was the first to offer and did not get any response from the pitchers.
Namita chose not to invest as there was no CEO, and she felt both brothers were overlapping a lot. Amit enquired about their father’s business which is an integrated steel business. They make a profit of around INR 30 crore annually. So, Amit offered them INR 1 crore for 1.5% equity at a valuation of INR 66.67 crore.
|Akash Agrawal & Ashish Agrawal
|Unadultered Indian Spices
|Business is not profitable
|Shark Tank Episode
|Season 2 – Episode 28
|INR 1 core for 0.5% equity
|INR 1 crore rupees for 1.25% equity
|INR 80 crore
Zoff got a deal of INR 1 crore from Aman Gupta for 1.25% equity at a valuation of INR 80 crore on Shark Tank India Season 2.
Frequently Asked Questions About Zoff
After their appearance on Shark Tank India Season 2, people were trying to find more information about Zoff. Here are some of the frequently asked questions about them.
1. Who Are The Founders of Zoff?
Akash Agrawal & Ashish Agrawal are the founders of Zoff.
2. Is Zoff profitable?
Zoff is profitable.
3. Why Other Sharks did not invest in Zoff?
Namita felt the business needed a CEO, and there was too much confusion. Anupam offered them but stepped back as the pitchers did not respond to him. Other sharks made an offer, but the pitchers eventually decided to go with Aman.
4. What happened to Zoff after Shark Tank?
Zoff raised INR 1 crore from Aman Gupta (co-founder of Boat). They plan to expand their product range and going to focus on exports moving forward. They will also keep focusing on their omnichannel strategy to ensure a consistent revenue flow, as told by their co-founder Ashish Agrawal.