The pet food company Drools has revealed that L Catterton, a private equity firm, has invested $60 million in it at a valuation of $600 million. One of the biggest investments made in India’s pet care sector to date is this one.
According to a press release from the pet food company, Drools will take advantage of L Catterton’s category knowledge and brand-building skills to further solidify its position in the quickly expanding pet food market in the nation.
The investment also represents L Catterton’s entry into the Indian market. The company has invested in consumer product brands like Sugar Cosmetics and FabIndia.
In the pet food industry, according to Drools, which was founded by Fahim Sultan in 2010, the company holds a commanding 38% market share. The company currently exports its goods to over 22 nations, including Australia, Israel, and the United Arab Emirates. Additionally, it has plans to do business in the United States and Russia this year. With three production facilities and 650 SKUs, Drools serves a sizable population of pets. The brand produces 50% of the prescription diet market.
The company claims to be the largest seller in the category on Amazon with a 100% e-commerce presence, and it has a portfolio of dog and cat food brands including Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum.
The company sells its goods offline at more than 34,000 points of sale, including specialty vet shops, veterinary clinics, and general merchandise stores, in addition to online through e-commerce websites.
SAP, Salesforce, and other technology platforms are also used by the business.
When compared to FY21, Drool’s operational revenue increased 65.3% to Rs 355.8 crore (from Rs 215.25 crore). In FY22, the company’s profits increased 4.5X, from Rs 7.9 crore in FY21 to Rs 35.78 crore, according to the standalone financial statement filed by the company with the RoC. Within the next two years, it wants to double its top line.
Along with other businesses, the company is in competition with Heads Up for Tails, Goofy Tails, and LUVIN. One of the best-funded companies in this field is Heads Up for Tails, which is backed by Sequoia and received $37 million in funding during its first institutional round in August 2021.
