Pawfect Pet Foods taps Lincoln to raise $17 million for India launch, global push
:
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.
Also read: Pet care goes smart with tech
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.
Also read: Supertails eyes Blue 7 Vets acquisition to expand offline pet care footprint
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.
Also read: Four legged influencers are becoming pet care industry's marketing mavericks
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
a few seconds ago
- Business Standard
WPI inflation dips for 2nd month, hits 25-month low of -0.58% in July
The Wholesale Price Index (WPI)-linked inflation on Thursday stayed negative for the second month in a row at -0.58 per cent in July, due to the decline in food and fuel prices, according to the data from the Ministry of Commerce and Industry. The wholesale inflation during the same period last year was 2.10 per cent, whereas the inflation for June stood at -0.13 per cent. "Negative rate of inflation in July, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum and natural gas, manufacture of basic metals," the ministry said in a statement. Food articles saw sharper deflation According to the WPI data, food articles recorded a sharper deflation of 6.29 per cent in July, compared with 3.75 per cent in June, led by a steep fall in vegetable prices. Deflation in vegetables rose to 28.96 per cent in July from 22.65 per cent during the last month. Among other categories, inflation in manufactured products inched up slightly to 2.05 per cent in July from 1.97 per cent in June. The fuel and power segment saw a deflation of 2.43 per cent in July, as against 2.65 per cent in the previous month. CPI inflation slowed to 1.55% in July As reported by Business Standard earlier, the retail inflation, measured by the Consumer Price Index (CPI), slowed to 1.55 per cent in July, down from 2.1 per cent in June. The decline was driven by a contraction in food prices, the data showed on Tuesday. This was the ninth consecutive month of easing prices, taking inflation well below the Reserve Bank of India's (RBI's) target band of 2–6 per cent. At 1.55 per cent, it is the lowest print since June 2017, according to data from the Ministry of Statistics and Programme Implementation. Policy rates unchanged, inflation forecast lowered in August MPC The RBI, which tracks inflation for policy decisions, had kept benchmark rates unchanged at 5.5 per cent earlier this month. The RBI's monetary policy committee had revised its CPI-based inflation projections, sharply decreasing estimates for the financial year 2025-26 (FY26), mainly due to softer food prices, a favourable base effect, and easing global commodity costs. The FY26 inflation forecast has been eased to 3.1 per cent, down from 3.7 per cent.
India.com
a few seconds ago
- India.com
India's WPI Inflation Falls To 2-Year Low In July As Food Prices Fall
New Delhi: India's annual rate of inflation based on the Wholesale Price Index (WPI) fell further in the negative zone to a two-year low of (-) 0.58 in July this year, compared to the same month of the previous year -- primarily due to a decrease in the prices of food articles and fuels such as petrol, diesel and natural gas, according to data released by the Commerce and Industry Ministry on Thursday. The WPI inflation for July is also lower than the -0.13 per cent that was recorded in the previous month of June. WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent in May. There was a 2.15 per cent decline in the food index while the cost of fuels such as petrol and diesel fell by 2.43 per cent during July compared to the same month of the previous year, resulting in the inflation rate turning negative. The decline in WPI inflation is also expected to lead to further easing of retail inflation as the drop in prices of bulk goods is passed on to the retail level and the decline in fuel prices leads to a drop in transport costs. Meanwhile, the country's inflation rate based on the Consumer Price Index (CPI) eased further to 1.55 per cent in July this year compared to the same month of the previous year as prices of food declined during the month. This is the lowest level of year-on-year retail inflation since June 2017, according to a statement issued by the Ministry of Statistics. The retail inflation in July was also lower by 55 basis points than the 2.1 per cent for the previous month of June this year which was the lowest level of retail inflation since January, 2019. Food Inflation in July this year fell into the negative zone at -1.76 per cent as prices declined compared to the same month of the previous year. The significant decline in headline inflation and food inflation during July, 2025 is mainly attributed to favourable base effect and to decline in inflation of pulses, vegetables, cereals, egg and sugar. The inflation rate also fell due to the decline in cost of transport and communication and education. Besides, there was a mild drop in housing inflation during the month. Meanwhile, the Reserve Bank (RBI) has pegged India's CPI inflation at 3.1 per cent for 2025-26 as the steady progress of the monsoon and robust kharif sowing are expected to keep food prices in check. RBI Governor Sanjay Malhotra recently said, 'The inflation outlook for 2025-26 has become more benign than expected in June. Large favourable base effects combined with steady progress of the southwest monsoon, healthy kharif sowing, adequate reservoir levels and comfortable buffer stocks of foodgrains have contributed to this moderation.' CPI inflation, however, is likely to edge up above 4 per cent by Q4:2025-26 and beyond, as unfavourable base effects, and demand side factors from policy actions come into play. Barring any major negative shock to input prices, core inflation is likely to remain moderately above 4 per cent during the year, he explained.
Mint
a few seconds ago
- Mint
Standard Bank Profit at Record as Fees Beat Soft Loan Growth
(Bloomberg) -- Standard Bank Group Ltd., Africa's biggest lender by assets, reported first-half profit climbed to a record as fee growth and trading revenue helped offset a slowdown in interest income. Headline earnings grew 8% to 23.8 billion rand ($1.35 billion), the Johannesburg-based lender said in a statement on Thursday. Net income available to shareholders increased 11% to 23.8 billion rand, while the lender's return on equity climbed to 19.1% Standard Bank's shares surged as much as 6% by 10 a.m. in Johannesburg to an intraday record. The stock is now up 15% since the start of the year. The lender, backed by Industrial & Commercial Bank of China Ltd., has seen its business in Africa grow as it increased deposits and added customers. Angola, Ghana, Kenya, Mauritius, Mozambique and Nigeria are among Standard Bank's top contributors. Net fee and commission revenue at the bank jumped 12%, while net interest income rose 2% as lower average interest rates compressed loan margins. Headline earnings at the bank's South African operations climbed 14%, amid growth in active business clients that was underpinned by an expanding transactional and merchant account base. Headline earnings at the bank's rest-of-Africa operations climbed 8%. The unit now makes up 41% of the bank's total earnings, while it's South Africa operations account for 49%. Credit impairment climbed 2% to 8.14 billion rand in the period, amid sovereign credit risk deterioration at some of the bank's African operations, particularly Mozambique. 'Subject to developments, this may give rise to additional impairment charges in the second half of the year,' the lender said in a statement. The rise in bad debts resulted in the lender's credit loss ratio widening marginally to 0.93%, within the board approved target of 70 basis points to 100 basis points. The bank reported a so-called common-equity tier 1 ratio of 13.2%, surpassing the 12.5% board approved target. It's exceeded this range since 2021. Since 2022, the group has cumulatively mobilized more than 230 billion rand in sustainable finance since 2022, with 53 billion rand mobilized in the first half of 2025. The lender plans 450 billion rand in green loans by 2028. Standard Bank declared an interim dividend of 8.17 rand per share, surpassing median analyst estimates of 7.72 rand. (Updates with South Africa performance in fourth paragraph, credit impairments in fifth paragraph.) More stories like this are available on
