New Delhi: Pet food brand Drools Pet Food Pvt. Ltd., has raised $60 million from LVMH-backed private equity firm L Catterton.
The private equity firm's investment in Drools amounts to 10% of the company’s valuation, making it one of the largest investments in the Indian pet care industry to date.
The funding will be used to enhance the brand’s manufacturing capabilities apart from expanding the company’s retail footprint, and invest in marketing, Drools said in a statement on Tuesday.
Drools was founded in 2010 by Fahim Sultan, the brand now exports its products to over 22 countries, including Australia, Israel, and the UAE.
It plans to enter the Russian market this year followed by its entry into the United States. Drool’s has a sales staff of 1,800 employees; its products are available at 34,000 retail outlets in India. Drools operates three production facilities in the country. It offers over 650 stock-keeping units—selling dog and cat food brands such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum.
“This partnership will unlock a new phase of growth as India’s developing pet market matures across metros, as well as Tier 1 and Tier 2 cities. This funding milestone enables us to further solidify our position in the market and continue our journey towards creating a positive impact in the pet food industry. L Catterton’s expertise and ability to create value for companies in the pet food sector is well known across the industry,” said Fahim Sultan, founder, Drools Pet Food Pvt. Ltd.
To be sure, L Catterton has significant experience building brands in the pet food market—its current and past investments include Butternut Box, Canidae, Inspired Pet Nutrition, Instinct, JustFoodForDogs, Lily’s Kitchen, among other pet food brands.
In India, the company’s portfolio includes investments in consumer-focussed brands such as FabIndia and Sugar Cosmetics.
India’s pet care market is an inflection point, said Anjana Sasidharan, a partner in L Catterton Asia.
In the past, several large companies have invested in the market; startups offering pet accessories and goods have emerged as pet ownership increases. Last year, Nestle India announced the acquisition of its own Purina Petcare India’s pet food business for ₹125.3 crore to drive greater growth in the category. Meanwhile, Mars Inc., sells pet food brands such as Pedigree and Royal Canin. Meanwhile, investors have shown greater appetite to invest in the category.
“What truly differentiates Drools is its ability to manufacture high-quality products across the price ladder and make them available to pet parents via every relevant channel, be it online on Amazon or Flipkart, or offline in over 34,000 points of sale spanning specialty vet shops, veterinary clinics, and general trade stores,” Sasidharan, a partner in L Catterton Asia, said.
With the funding boost, Drools aims to ramp up its production capacity, streamline operations, and strengthen its distribution network.
