 "Drools Pet Food")
Pet food brand Drools Pet Food Pvt Ltd said on Tuesday that it has raised $60 million in funding from investment firm L Catterton. The infusion amounts to 10 per cent of the company’s valuation.
The funding will be used to enhance the company’s manufacturing capabilities, accelerate its retail expansion plans, bolster marketing, and talent acquisition, Drools said in a statement.
“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,” said Fahim Sultan, Founder, Drools Pet Food.
“We are keen to leverage its (L Catterton’s) consumer insights, operating know-how, and commercial network to further strengthen our brands and recruit talent as we see many years of secular growth ahead," he added.
Founded by Sultan in 2010, Drools currently commands a 38 per cent market share in the Indian pet food market. Currently, the brand exports its products to 22 countries, including Australia, Israel, and the UAE. It also plans to enter the Russian market this year and the United States in the near future.
“With the support of our new partner, we will strengthen our production capabilities, expand our retail footprint, and invest in strategic marketing initiatives. This investment reflects the confidence in our business model and our commitment to providing superlative pet food products to our customers," said Dr Shashank Sinha, CEO and Veterinarian, Drools Pet Food.
L Catterton has previously taken bets in the pet food space, with investments in global firms like Butternut Box, Canidae, Inspired Pet Nutrition, JustFoodForDogs, Lily’s Kitchen, Old Mother Hubbard, Partner Pet, Petlove, and Pure & Natural. In India, it has invested in consumer brands such as FabIndia and Sugar Cosmetics.
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“What 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,” said Anjana Sasidharan, Partner, L Catterton Asia.
The company, which closed financial year 2022 with a turnover of Rs 360 crore, recently said that it aims to double its business in India in the next two years.
Its competitors include Pedigree-maker Mars Petcare, which is the largest player in the market, as well as Nestle India - following its purchase of Purina Petcare India for about Rs 125 crore last year.
In 2021, pet food accounted for Rs 3,143.03 crore of the market while pet products took Rs 558.96 crore of the share, according to research company Euromonitor International. The industry grew at 15 per cent CAGR from 2016 to 2021 but is now projected to grow at 30 per cent CAGR in 2021-26.
