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Pet food brand Drools Pet has raised $60 million from L Catterton LVMH in a private equity firm round.
With this round, the consumer growth investor marks its entry into the pet food sector in India. According to the company, the investment is to the tune of 10 per cent of the company’s valuation, making it one of the largest to date in the country’s pet care industry.
The funding will be used to enhance manufacturing capabilities to meet the growing demand for quality pet food products, accelerate the company’s retail plan, bolster the marketing budget, and attract top talent to support future growth, it said. It operates three production facilities and a consolidated warehouse facility of 8-lakh sq ft.
Started in 2010, the company says it has a 38 per cent market share. Additionally, it exports to over 22 countries, including Australia, Israel, and the UAE, and plans to enter Russia this year and the US in the near future.
Currently, it employs 3,400 people, and its products are available across 34,000 retail outlets in the country. Overall, it offers 650 SKUs, with 50 per cent of the prescription diet coming from the brand.
“This partnership will unlock a new phase of growth as India’s developing pet market matures across metros, Tier 1 and Tier 2 cities. The investor’s expertise and ability to create value for companies in the pet food sector are well known. We are keen to leverage its consumer insights, operating know-how, and commercial network to further strengthen our brands and recruit talent,” said Fahim Sultan, founder of Drools Pet Food Pvt Ltd.
Also read: Global pet food majors sniff big growth in India
L Catterton’s investments in the pet sector include Butternut Box, Canidae, Inspired Pet Nutrition, Instinct, JustFoodForDogs, Lily’s Kitchen, Old Mother Hubbard, Partner Pet, Petlove, Pure & Natural, and Rachael Ray Nutrish. In India, it has invested in consumer brands such as FabIndia and Sugar Cosmetics.
“Drools’ ability to manufacture quality products across the price ladder is a differential factor. This is an exciting time to be entering the country’s pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business,” noted Anjana Sasidharan, a partner in L Catterton Asia.
Also read: Mankind Pharma forays into pet-care segment with PetStar Dog Food
Along with ramping up production capacity, the pet food brand will focus on streamlining operations and strengthening its distribution network. With a portfolio that includes dog and cat food brands such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum, it is one of the largest seller in the segment on Amazon with a 100 per cent e-commerce presence, the company said.
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