Pet food brand Drools has secured $60 million in funding from L Catterton. The US-based farm invested in Drools at a valuation of $600 million. L Catterton’s investment marks its entry into the pet care sector in India. With the funding, Drools aims to strengthen its position in India’s pet food market.
About Drools Pet Food
Drools was founded by Fahim Sultan in 2010. It claims a significant 38% market share in the pet food space. The company’s revenue growth in FY22 outpaced its performance in FY21.
In FY22, Drools pet food experienced a remarkable 65.3% surge in operational revenue, amounting to Rs 355.8 crore. Furthermore, the company’s profits in the same period increased by 4.5 times, reaching Rs 35.78 crore. Drools has set a target to double its revenue in the coming years, showcasing its ambition for future growth and expansion based on its strong financial performance.
Drools pet food products are sold online and offline through various channels. It utilizes technology platforms such as SAP and Salesforce in its operations. The company’s products can be purchased on platforms like Amazon and Flipkart. The company holds the top position as the largest seller within its specific category on Amazon. It distributes its products in more than 34,000 retail locations, which include specialized veterinary shops and clinics.
Drools’ Market
Drools is actively expanding its global presence through international exports. The brand exports products to over 22 countries, including Australia, Israel, and the UAE.
The company plans to enter the Russian market this year and the United States in the future. They operate three production facilities to cater to a wide range of pets. The company offers a diverse range of 650 SKUs, with 50% of the prescription diet.
Drools faces competition from companies like Heads Up for Tails, Goofy Tails, and LUVIN. Heads Up for Tails, backed by Sequoia, secured $37 million in funding in August 2021.
Drools’ investment from L Catterton is one of the largest in India’s pet care industry. The funding will enable Drools to leverage L Catterton’s expertise and brand-building capabilities. L Catterton has previously invested in consumer brands like FabIndia and Sugar Cosmetics.
L Catterton Asia’s Anjana Sasidharan emphasized Drools’ differentiation in the market. The pet care market in India is projected to grow by approximately 20% annually. By 2028, the market is expected to reach over $1.2 billion. Increasing pet adoption and urbanization contribute to the market’s growth.
Anjana also highlighted Drools’ ability to manufacture high-quality pet products. Drools makes its products available through various channels, both online and offline.
Drools Pet Food aims to meet the increasing demand for pet care products in India. The company leverages macro trends such as rising income levels and pet humanization. Pet owners are willing to spend more on their pets’ needs. Smaller household sizes also drive pet care spending. Pet owners are opting for packaged pet food instead of preparing home-cooked meals.
L Catterton Investment Profile
L Catterton has made over 250 investments in leading consumer brands since 1989. The company manages approximately $30 billion in assets for growing middle-market companies. L Catterton is believed to be the largest and most experienced consumer-focused private equity group worldwide.
L Catterton has invested in various pet food businesses globally. Some businesses it has invested in include Butternut Box, Canidae, and Harringtons.
L Catterton has also invested in retail companies like FabIndia and Sugar. FabIndia is an ethnic wear and home decor company. Sugar is a startup in the beauty-care industry.
L Catterton’s investment in Drools pet food demonstrates its interest in diverse consumer sectors. Drools’ high-quality manufacturing and distribution capabilities attracted L Catterton’s investment.
L Catterton’s approach involves understanding consumer preferences and identifying benefiting categories and companies. The company constantly pursues insights into trends that drive consumer preferences and purchasing decisions. L Catterton analyses trends by analysing demographic, psychographic, technological, geographic, and socioeconomic factors.
