From mint · Priyamvada C · · 1m 20s
Zoff Foods Targets ₹1,000 Crore Valuation for Minority Stake
Zoff Foods seeks minority stake from PEs and strategics at over ₹1,000 crore valuation.
In brief
Zoff Foods seeks minority stake from PEs and strategics at over ₹1,000 crore valuation. Zoff Foods aims to raise growth capital through a minority stake sale to private equity and strategic investors like ITC, valued at over ₹1,000 crore. Originally reported by mint.
Zoff Foods Minority Stake Sale
Zoff Foods, a Raipur-based spice company, is exploring a minority stake sale to private equity firms and strategic investors including ITC, Emami, and Orkla India.
“Zoff Foods is exploring a minority stake sale to raise growth capital in a deal that could value the spices and seasoning company at over ₹ 1,000 crore”
Early Stage Deal Discussions
The deal is in early stages with details on capital raise and valuation expected to evolve, and EY has been hired as financial adviser.
Strategic Investors Target
Strategics are open to small stakes for fast-growing assets, with Zoff Foods expected to use capital for product expansion and geographical reach.
Financial Projections
Zoff Foods is expected to clock ₹200-250 crore annual recurring revenue this fiscal year and turn Ebitda-positive by Q4.
Existing Investor Options
Existing investor JM Financial could sell part of its 20% stake if valuation is attractive, potentially enabling a minority stake sale.
Potential IPO Path
If the deal goes through, Zoff Foods will explore an initial public offering with further scale.
Competitor Landscape
Zoff Foods competes with legacy giants, regional category leaders, and new-age D2C brands in India’s packaged spices market.
The main idea
Zoff Foods aims to raise growth capital through a minority stake sale to private equity and strategic investors like ITC, valued at over ₹1,000 crore.
