Imdad Hussain
In the ever-changing environment of India’s food and beverage business, one brand is causing a shift in our perception of ready-to-drink coffee. Zenma, founded by Gurugram siblings Karan and Sheena Khurana, has set out on an ambitious path to reinvent coffee consumption. Zenma was formally established in September 2023, following years of hands-on experience with traditional coffee shops and a strong desire to provide high-quality coffee. Despite initial challenges and a shift from a brick-and-mortar to an online strategy, Zenma has emerged as a bold, inventive brand with its signature product, Zenma Frozen Espresso Shots.
The Founding Story: Siblings With a Vision
Karan and Sheena Khurana’s journey into the world of coffee is one of passion, perseverance, and adaptability. Sheena and Karan both have an economics background, having graduated from Delhi College of Arts and Commerce (DU) and St. Stephen’s College (DU). Their common interest in coffee began early on. While Sheena pursued Barista training after four years of corporate experience to improve her understanding of coffee craftsmanship, Karan’s academic background in economics equipped him with the analytical abilities required to strategy business growth.
Sheena started out on her own, operating a coffee business near her employment. The success of her initial endeavor prompted Karan to collaborate with her, and the two of them opened a second coffee shop. However, the unexpected arrival of the Covid-19 epidemic compelled them to close both establishments. During this difficult time, the couple saw an opportunity in the internet world. While their previous online attempt to sell coffee beans was received with lukewarm reception- customers simply didn’t understand how to utilize the product- the experience paved the way for a new, inventive approach. Thus, Zenma’s product line debuted in September 2023, with a concentration on ready-to-consume coffee in the form of Frozen Espresso Shots.
Behind the Scenes: Coffee Shops and Cutting-Edge Products
The shift from traditional coffee shops to an online business was not without challenges. With two physical stores closed, the Khurana siblings were forced to completely rethink their approach. Their previous experiment into selling raw coffee beans online exposed a significant consumer issue, a lack of guidance on how to make an excellent cup of coffee at home. This realization inspired them to create a product that was not only creative but also incredibly usable.
Zenma Frozen Espresso Shots are intended to remove guessing in coffee making. Each shot costs ₹60 per unit and can be made in only 0.5 minutes. The procedure is as simple as it is ingenious: first, peel the wrapper; then, the contents melt to the ideal consistency; and finally, pour the espresso shot into your cup. With a shelf life of up to a year in the freezer and no preservatives or additives, this product ensures a fresh, café-quality experience at home. Available in four enticing flavors (medium roast, light roast, dark roast, and mocha), these shots have already sold 70,000 units in the last year, demonstrating their popularity among coffee enthusiasts.
Marketing and Sales Channels
Zenma’s distribution approach is diverse. The brand is currently available in four major cities, and its products may be purchased both on its own website and through rapid commerce networks. This omni-channel strategy ensures that the product reaches a diverse group of coffee enthusiasts who value convenience and quality. The overwhelming preference for 88% of its sales coming from the brand’s own website (translating to approximately ₹7.04 lakhs) reflects a strong direct-to-consumer model, while 10% of sales through quick commerce platforms (around ₹8 lakhs) and a modest 2% through B2B channels (approximately ₹1,600) diversify revenue streams.
In Shark Tank India season 4, Karan Khurana famously said, “Abhi toh party shuru hui hai,” reflecting Zenma’s positive and festive atmosphere following a successful launch and early sales.
Revenue Milestones and Sales Data
Since its launch, Zenma has begun to chart its financial journey with notable milestones in revenue generation. From September 2023 to March 2024, the company recorded sales of ₹5 lakhs- a modest beginning that set the foundation for rapid growth in subsequent months. As consumer awareness increased and distribution channels were optimized, monthly sales began to accelerate:
- April 2024: ₹1.5 lakhs
- May 2024: ₹3.5 lakhs
- June 2024: ₹8 lakhs
These figures not only reflect a positive upward trajectory but also highlight the brand’s ability to scale its operations swiftly. The steady growth in sales is a testament to the quality of the product and the effectiveness of Zenma’s marketing strategies.
Unit Economics
At the heart of Zenma’s business model lies a careful balancing act between cost efficiency and product quality. A detailed breakdown of the unit economics provides insight into the company’s financial architecture:
Base Price and Unit Details:
Each Zenma Frozen Espresso Shot retails at ₹60 per unit.
- Selling Price Components
- GST: ₹91
- Discounts offered: ₹56
This results in a net selling price that is calibrated to appeal to price-sensitive customers while maintaining profitability margins.
- Cost of Goods Sold (COGS): ₹275
- Shipping Fees: ₹66
- Transaction Charges: ₹12
- Marketing Expenses: (-₹200) per unit
Despite these costs, the unit ultimately achieves an EBITDA of ₹101, indicating that with scale, the margins could improve significantly.
This detailed financial breakdown underscores the brand’s commitment to transparency and its focus on optimizing unit economics to ensure long-term sustainability. However, it also reveals the challenges inherent in maintaining profitability in a competitive market.
Detailed Financial Snapshot
- CapEx in Coffee Shops: ₹13 lakhs
- OpEx in Coffee Shops: ₹8 lakhs
- Lifetime Net Loss: ₹51 lakhs
- Average Annual Loss: ₹10 lakhs
The brand’s burn rate has been a significant theme in its financial narrative. Zenma’s marketing cost in September 2024 was ₹4.7 lakhs, with a total monthly burn of ₹10 lakhs. In October 2024, the burn rate fell to between ₹5 and ₹6 lakhs as the corporation proceeded to fine-tune its processes. Despite these losses, Zenma’s ability to produce revenue while maintaining a strong focus on unit economics offers a path to future profitability. The financial measures, while currently in the red, are being continuously watched and altered to prepare the road for long-term growth.
Shark Tank India Pitch
Zenma went on Shark Tank India in order to obtain further funding and accelerate its expansion. During their pitch, the Khurana siblings sought ₹60 lakhs in exchange for 3.5% equity, implying a post-money valuation of around ₹17.14 crore. This daring request was made to entice investors by emphasizing the brand’s potential in a market that is both vast and wealthy.
However, the trip to Shark Tank India was not without hurdles. Despite the attractive product and novel strategy of Zenma Frozen Espresso Shots, the acquisition did not go through. Investors voiced concern about the company’s profitability measures, pointing out that the business was not yet generating enough returns to warrant the investment at the proposed valuation. Ultimately, the purchase was not completed due to profitability concerns- a reality that Zenma’s founders are confronting as they strengthen their financial model and strive for a sustainable bottom line.
Conclusion
As Zenma continues to develop and negotiate the difficulties of a competitive market, one thing is clear, Karan and Sheena Khurana’s adventure has only just begun. Their enthusiasm for coffee, along with their academic rigor and entrepreneurial zeal, points to a future in which Zenma will not only reinvent coffee consumption but also set new industry standards for quality and convenience. Only time will tell how Zenma’s adventure unfolds, the scent of accomplishment is already in the air, and the celebration has only just begun.