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Economic Times
3 days ago
- Business
- Economic Times
VCs smell a big opportunity as petcare expands beyond food
A surge in pet adoption since the Covid pandemic, coupled with the rapid expansion of petcare services and the rise of quick commerce, is prompting both risk-capital and strategic investors to seek opportunities in the petcare startup space. ADVERTISEMENT On Monday, Swiss multinational Nestlé SA announced a minority investment in Drools, turning the Bengaluru-based pet food brand into a unicorn, or a privately held firm valued at $1 billion or more. Supertails, a digital petcare platform backed by Fireside Ventures, is in talks to raise $24–25 million in a fresh round, people aware of the matter said. Heads Up For Tails, a petcare brand and retail chain backed by Peak XV Partners, is also in discussions for a new round of funding, sources a Gurgaon-based veterinary care startup, recently closed a $26-million funding round led by Bessemer Venture the last five years, petcare startups — which are broadly categorised as either product-driven offerings or services — have raised $198 million in funding across 20 deals, according to data provided by Venture Intelligence. ADVERTISEMENT Petcare startups have raised $198 million 20 deals over five years. 'Investors see this as a very healthy category because on the one side, there is growth and on the other side, it is a pure retention-based category with good margins,' said Vineet Khanna, cofounder of Supertails. ADVERTISEMENT Founded in 2021, Supertails has raised $30 million so far, including $15 million from RPSG Capital Ventures in February 2024. Prior to the Nestlé investment, Drools had raised $60 million from L Catterton in 2023. ADVERTISEMENT India's petcare market, currently valued at $3.5 billion, is expected to reach $7–7.5 billion by 2028, according to a report by Redseer Strategy Consultants. The number of pets in Indian households has grown from 26 million in 2019 to 32 million in 2024, the report noted.'Higher disposable incomes, delayed marriages, and lower fertility rates are contributing to increased demand for companionship (of pets),' Khanna said the industry is growing consistently with strong retention of consumers, 'especially as people spend more across categories.' ADVERTISEMENT Legacy FMCG players and consumer companies have also entered the fray. In August 2023, Godrej Consumer Products committed Rs 500 crore to the category through a joint effort with Godrej Agrovet. Earlier, Nestlé India acquired Purina Petcare India from its global parent for Rs 125.3 crore, and Emami picked up a 30% stake in petcare brand Cannis Lupus Services India. Currently, Mars, the maker of Pedigree and Royal Canin, remains the market leader in pet nutrition in larger players, startups like Heads Up For Tails, Supertails, Goofy Tails, and Just Dogs have built product-led offerings, while Vetic, Petmojo, The Pet Nest, and Happy Pettings are focused on services like vet care, grooming, and product purchases are increasingly made online, especially on platforms like Amazon, Flipkart, and quick commerce services like Blinkit and Zepto.'Ecommerce created the initial demand, but quick commerce is what's taking it to the next level,' said Renu Bisht, founder of brand consultancy Commercify360. 'Now, even in tier-II cities, pet owners can access a wide range of products without visiting niche offline stores.'Non-food categories such as grooming, supplements, toys, and accessories are now growing faster than core pet food, industry experts said.'If food is growing at 18–20% year-on-year, non-food segments like healthcare and accessories are clocking over 25% growth,' Khanna noted. 'Pet parents today are far more aware of their pets' needs.' Prayag Mohanty, principal at Fireside Ventures, said, 'The pandemic was a clear tailwind. People were at home and started looking for companionship. That growth has continued across the category.'
Time of India
3 days ago
- Business
- Time of India
VCs sniff opportunity as petcare expands beyond food
A surge in pet adoption since the Covid pandemic, coupled with the rapid expansion of petcare services and the rise of quick commerce, is prompting both risk-capital and strategic investors to seek opportunities in the petcare startup space. On Monday, Swiss multinational Nestlé SA announced a minority investment in Drools , turning the Bengaluru-based pet food brand into a unicorn, or a privately held firm valued at $1 billion or more. Supertails, a digital petcare platform backed by Fireside Ventures, is in talks to raise $24–25 million in a fresh round, people aware of the matter said. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Heads Up For Tails, a petcare brand and retail chain backed by Peak XV Partners, is also in discussions for a new round of funding, sources said. Vetic, a Gurgaon-based veterinary care startup, recently closed a $26-million funding round led by Bessemer Venture Partners. Live Events Over the last five years, petcare startups — which are broadly categorised as either product-driven offerings or services — have raised $198 million in funding across 20 deals, according to data provided by Venture Intelligence. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories ETtech Petcare startups have raised $198 million 20 deals over five years. 'Investors see this as a very healthy category because on the one side, there is growth and on the other side, it is a pure retention-based category with good margins,' said Vineet Khanna, cofounder of Supertails. Founded in 2021, Supertails has raised $30 million so far, including $15 million from RPSG Capital Ventures in February 2024. Prior to the Nestlé investment, Drools had raised $60 million from L Catterton in 2023. India's petcare market, currently valued at $3.5 billion, is expected to reach $7–7.5 billion by 2028, according to a report by Redseer Strategy Consultants. The number of pets in Indian households has grown from 26 million in 2019 to 32 million in 2024, the report noted. 'Higher disposable incomes, delayed marriages, and lower fertility rates are contributing to increased demand for companionship (of pets),' Khanna said. He said the industry is growing consistently with strong retention of consumers, 'especially as people spend more across categories.' Legacy FMCG players and consumer companies have also entered the fray. In August 2023, Godrej Consumer Products committed Rs 500 crore to the category through a joint effort with Godrej Agrovet. Earlier, Nestlé India acquired Purina Petcare India from its global parent for Rs 125.3 crore, and Emami picked up a 30% stake in petcare brand Cannis Lupus Services India . Currently, Mars, the maker of Pedigree and Royal Canin, remains the market leader in pet nutrition in India. Alongside larger players, startups like Heads Up For Tails, Supertails, Goofy Tails, and Just Dogs have built product-led offerings, while Vetic, Petmojo, The Pet Nest, and Happy Pettings are focused on services like vet care, grooming, and training. Pet product purchases are increasingly made online, especially on platforms like Amazon, Flipkart, and quick commerce services like Blinkit and Zepto. 'Ecommerce created the initial demand, but quick commerce is what's taking it to the next level,' said Renu Bisht, founder of brand consultancy Commercify360. 'Now, even in tier-II cities, pet owners can access a wide range of products without visiting niche offline stores.' Non-food categories such as grooming, supplements, toys, and accessories are now growing faster than core pet food, industry experts said. 'If food is growing at 18–20% year-on-year, non-food segments like healthcare and accessories are clocking over 25% growth,' Khanna noted. 'Pet parents today are far more aware of their pets' needs.' Prayag Mohanty, principal at Fireside Ventures, said, 'The pandemic was a clear tailwind. People were at home and started looking for companionship. That growth has continued across the category.'
Mint
6 days ago
- Business
- Mint
Pawfect Pet Foods taps Lincoln to raise $17 million for India launch, global push
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. 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
Mint
05-05-2025
- Business
- Mint
These startups are drawing investor interest amid a growing tribe of pet parents
Mumbai: Urban India's pet parents are driving a wave of investor interest in the pet care space. A clutch of startups such as Heads Up For Tails, Supertails, and Vetic are now in fundraising talks amid rising demand for premium products and services. While Supertails looks to raise about ₹ 200 crore by the end of this year, Heads Up For Tails is eyeing an investment from domestic investment firm 360 One Asset over the next few months, according to multiple people familiar with the matter. Vetic, a tech-enabled chain of pet clinics, is looking to raise a sizable round and has begun discussions with investors, they said, adding that some of these transactions may see existing investors part exit their stake. Supertails and Vetic did not immediately respond to Mint's requests for a comment. While 360 One declined to comment, Heads Up For Tails' founder Rashi Narang denied the development. Investor interest in India's pet care industry surged in the years following the pandemic, driven by a wave of new pet adoptions and rising disposable incomes. In 2023, pet care startups raised a record $66.3 million across 16 rounds, led by one major transaction—Drool's $60 million fundraise. While 2023 saw a funding spike driven by Drool's large deal, overall funding activity in 2024 was more broad-based, with fundraising at $17.9 million spanning 13 rounds, as per Tracxn. 'Pet ownership in India is estimated to be less than 10% of overall households, but growing at a rapid pace with rising incomes, especially among urban consumers. In developed economies, pet ownership can exceed three in four households, and that headroom for growth is reflected among the upper income segments in India," said Devangshu Dutta, chief executive of Third Eyesight, a management consulting firm. He added that urban couples and singles in many cases are even opting to become 'pet parents" instead of having children. Platforms such as Supertails, Drools and Heads Up For Tails have been the big beneficiaries of this shift. Drools raised $60 million from LVMH-backed private equity firm L Catterton in 2023, while Supertails raised $15 million led by RPSG Capital Ventures in February last year. Earlier this year, Mint reported that Heads Up For Tails has begun fresh talks to raise $40 million from new and existing investors such as Peak XV and Verlinvest, about four years after its last institutional round. While the exact size of the round is still being decided, the company intends to use the proceeds towards its expansion plans. Similarly, Supertails, which is in talks to acquire Blue 7 Vets, a multispecialty veterinary clinic as part of its strategy to expand its offline presence, will also raise capital to fund the acquisition of new customers, investments in technology, and the expansion of healthcare services, including Supertails Pharmacy and build an omnichannel experience for consumers. The company raised about $15 million in its series B funding round last year led by RPSG Capital Ventures and existing investors Fireside Ventures, Saama Capital, DSG Consumer Partners and Sauce VC. Meanwhile, Vetic, which raised $3.7 million in a seed funding round led by angel investor Lachy Groom in 2022, aims to further bolster its geographical expansion of its clinic network across Delhi NCR and Bangalore regions. Vetic's round also saw participation from other angel investors including Utsav Somani, partner, AngelList India; Nitin Saluja, founder of Chaayos; Ritesh Agarwal, Abhinav Sinha, and Maninder Gulati of Oyo; Shiva Singh Sangwan, founder of 1947 Rise; Revant Bhate, CEO of Mosaic Wellness. Also Read: Four legged influencers are becoming pet care industry's marketing mavericks '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," Third Eyesight's Dutta said. '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," Dutta said. Currently valued at $3.5 billion, India's pet care industry is expected to grow significantly in the coming years, according to a report by Redseer Strategy Consultants in October 2024. As more pet parents focus on their pets' well-being, the demand for premium, specialized offerings will continue to rise, the report said, adding that the market's growth trajectory presents opportunities for both established players and new entrants to tap into this dynamic sector.
