JM Financial Private Equity invests Rs 40 crore in spice brand Zoff
JM Financial Private Equity has committed Rs 40 crore to Asquare Foods and Beverages, the parent company of the direct-to-consumer (D2C) spice brand Zoff. This investment aims to enhance Zoff’s brand presence and expand its market reach.
The Indian spices market is highly fragmented, with a noticeable shift from the unorganised sector to the organised market. This change is driven by factors such as increased emphasis on hygiene, quality, and growing health awareness in the post-COVID era, said Darius Pandole, Managing Director and Chief Executive Officer, Private Equity and Equity AIFs, JM Financial.
Zoff, founded by brothers Akash Agrawal and Ashish Agrawal, has achieved a 40 per cent compound annual growth rate (CAGR) over the past four years, leveraging e-commerce platforms, according to the press release.
The spice brand specialises in ground, blended, and whole spices, and is one of the few players using cold grinding technology.
“Millennials and Gen Z are emerging as active decision-makers in households,” said Akash Agrawal, Managing Director, Zoff. “The capital infusion and partnership with JM Financial Private Equity will help us fast-track our current and future expansion plans. Our focus is to become one of the top and most trusted food brands in India,” he added.
This is the seventh investment from the JM Financial India Growth Fund III. The Fund’s existing investments include API Holdings Ltd., a healthcare platform, Aarman Solutions Pvt. Ltd., which operates the healthcare e-commerce platform PharmEasy, and BigHaat Agro Pvt. Ltd., an agri-tech marketplace, among others.
The funding will be allocated to brand-building initiatives, capacity enhancements, and strengthening offline distribution networks, targeting growth in Tier-II and Tier-III markets as e-commerce penetration increases.
First Published: Aug 21 2024 | 3:14 PM IST