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Zoff Spice Brand Financial Performance and Challenges in FY25

Zoff, the spice brand showcased on Shark Tank, achieved a remarkable milestone by surpassing the Rs 100 crore threshold for the financial year ending March 31, 2025. Nonetheless, the company, backed by Aman Gupta, faced setbacks as it reported losses during the same timeframe due to escalated expenses and write-offs. According to financial statements obtained from the Registrar of Companies (RoC), Zoff’s operational revenue increased by 11%, reaching Rs 103 crore in FY25 compared to Rs 93 crore in FY24.

Co-founded in 2018 by Akash and Ashish Agrawal, Zoff is known for its premium quality spices. The brand provides a selective range of spices, dry fruits, and whole food products. However, the company’s expenses surged at a significantly faster rate than its revenue. Total expenses soared by 32%, rising to Rs 120 crore in FY25 from Rs 91 crore in FY24.

The cost of materials made up the largest portion of Zoff’s expenditures, constituting 61% of the total costs. This cost escalated by 22% to Rs 73 crore in FY25 from Rs 60 crore in FY24. Advertising expenses saw a dramatic increase, tripling to Rs 12 crore in FY25 from Rs 4 crore in FY24. Moreover, employee benefit expenses grew by 25% to Rs 5 crore. The company also declared Rs 4 crore in bad debt write-offs during the fiscal year.

The shift to unprofitability led Zoff to report a loss of Rs 17 crore in FY25, contrasting with a loss of Rs 20 lakh in FY24. The company’s Return on Capital Employed (ROCE) and EBITDA margin were recorded at -54.17% and -17.96%, respectively. On a unit basis, Zoff expended Rs 1.17 to generate a rupee in operating revenue during the year, an increase from Rs 0.98 in the previous fiscal year.

Zoff’s current assets rose to Rs 50 crore, up from Rs 43.5 crore. By the conclusion of FY25, the company’s cash and bank balances were at Rs 0.2 crore. Reports indicate that Zoff has secured approximately $5 million in funding to date, with JM Financial India serving as the lead investor. The co-founders, Akash and Ashish Agarwal, hold a combined 52.5% stake in the business. Plans are underway for a new fundraising round as Zoff aims for offline expansion.

The increase in losses, despite only achieving modest double-digit growth, highlights underlying challenges within the business. The spike in raw material costs and advertising expenditures is particularly unexpected, considering the brand’s exposure from Shark Tank. The spice market is highly competitive, and Zoff’s diversification efforts may lead to further commoditisation of its products.

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