Pawfect Pet Foods taps Lincoln to raise $17 million for India launch, global push

Mint

26-05-2025

MUMBAI
:
Pawfect Pet Foods, a premium export-first pet care brand from India, is looking to raise up to $17 million (about ₹144 crore) in its first institutional round as it prepares to launch domestically and double down on global expansion. The company has appointed investment bank Lincoln International to advise on the transaction, founder Prashant Patwardhan told Mint.
'The proceeds will be used to facilitate our launch in India as well as expanding our export-led business, which contributes nearly 99.9% of its revenues," said Patwardhan.
Founded six years ago, Pawfect has built a nearly 100% export-driven business with a footprint across the UK, US, Canada etc.
This assumes significance because India has not traditionally been viewed as a manufacturing hub for premium pet food or a major player in pet product exports. Yet, Pawfect has built a fully India-based supply chain, producing all its offerings domestically while serving over 30 global markets.
Now, it plans to launch in India—its home base—by the second half of 2025, leveraging the funds raised to establish a local presence while growing its international distribution.
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Premium positioning
With more than 150 offerings across key segments such as complete foods, functional treats, chews, toppers, and supplements, Pawfect products are priced in the range of ₹8,000 to ₹40,000 (depending on the exchange rate), significantly higher than the industry rates of about ₹200 to ₹7,000.
The brand justifies its pricing by emphasising scientifically formulated, 100% natural ingredients, and cost-efficient production.
Pawfect plans to grow its business in multifunctional treats and supplements, using its existing strengths in premium pet nutrition and grooming. This comes after successfully establishing products like its dental cheese chews.
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In FY24, the company clocked ₹45 crore in revenue, which organically grew to ₹80 crore in FY25. Profit also jumped from ₹2 crore to ₹18 crore in the same period, with FY26 revenue expected to touch ₹160 crore, said Patwardhan, adding that the company has been profitable since inception.
'Pawfect plans to scale further particularly in the UK where it sees some structural advantages following a recently signed free trade agreement and is also in active discussions with select partners to bring high-integrity pet products into the domestic market," Patwardhan added.
Pet care boom
Global annual household spending on pets is projected to reach $261 billion by 2030, a significant increase from $122 billion in 2019, as per a July Morgan Stanley report.
India's pet care industry, currently valued at $3.5 billion, is also set for substantial growth, according to an October 2024 report by Redseer Strategy Consultants.
This growth is attracting significant investor interest, with startups like Heads Up For Tails, Supertails, and Vetic actively seeking funding. Mint reported earlier this month on this rising demand for premium pet products and services, driven by urban Indian pet parents.
Vetic, a tech-enabled chain of pet clinics, recently secured ₹224 crore led by Bessemer Ventures. Supertails aims to raise around ₹200 crore by the end of this year, while Heads Up For Tails is looking for investment from domestic firm 360 One Asset in the coming months.
'Consumers are not only spending more money or buying products and services but also becoming conscious of quality and the differentiation between brands on offer, much as they would with products that they buy for themselves and their family members," Devangshu Dutta - chief executive of Third Eyesight, a management consulting firm, told Mint earlier this month.
'The spend on pet food, pet products and care services is growing… These trends have resulted in a growing number of companies entering the market and covering different segments of products and services," according to Dutta.
Investor frenzy
Investor interest in India's pet care industry surged post-pandemic, fuelled by increased pet adoptions and rising disposable incomes.
In 2023, pet care startups raised a record $66.3 million across 16 funding rounds, largely driven by Drools' $60 million fundraise. While 2023 saw a funding spike from this large deal, 2024's funding activity was more widespread, with $17.9 million raised across 13 rounds, according to Tracxn.
Platforms like Supertails, Drools, and Heads Up For Tails have been major beneficiaries of this shift. Drools secured $60 million from LVMH-backed private equity firm L Catterton in 2023, and Supertails raised $15 million led by RPSG Capital Ventures in February of last year.
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