Consumer-focused global investment firm L Catterton on Tuesday said it has invested $60 million in the Indian pet food company Drools, marking its first investment in the sector in the country.
L Catterton, which manages $33 billion of equity capital, has built a global pet food portfolio with companies like Ainsworth Pet Nutrition, Butternut Box, Canidae, Inspired Pet Nutrition, JustFoodForDogs, Lily’s Kitchen, Nature’s Variety, Petlove, and Wellness Pet Food Company among its investees. Earlier this year, L Catterton invested in China’s premium freeze-dried pet food company Partner Pet.
Some of L Catterton’s other bets in India include home decor and ethnic wear company FabIndia, and cosmetics startup Sugar.
Known for its portfolio of dog and cat food brands such as Drools, its flagship brand, as well as Pure Pet, Meat Up, Canine Creek, and Kitty Yum, Drools expects to leverage L Catterton’s expertise in the sector to strengthen its position in India’s growing pet food market.
Drools founder Fahim Sultan said, “India’s developing pet market continues to mature across metros, as well as Tier 1 and Tier 2 cities, and we see many more years of secular growth ahead.”
Drools said it has almost quadrupled its revenue over the past three years by building an omnichannel pan-India pet food business.
Anjana Sasidharan, a partner at L Catterton Asia said what differentiates Drools is its ability to produce high-quality pet products across different price points and make them accessible through various channels, including online platforms and offline stores. Drools’ emphasis on product quality has earned it a loyal customer base known for its value-for-money, high protein content, she added.
Macro trends such as rising income levels and the increasing humanisation of pets are leading owners to spend more on their four-legged friends. Packaged animal foods, for instance, are replacing home-cooked meals, contributing to the growth of this sector.
The pet care market in India is expected to grow by about 20% annually over the next five years to reach over $1.2 billion in 2028 on the back of increasing pet adoption, said L Catterton.
Other players in the market include Heads Up For Tails, Wag & Love, Petcart and PetSutra, with the most popular one being US-based Pedigree.
Last year, Emami announced plans to invest in the pet care startup Cannis Lupus Services India. While Nestle India acquired the pet foods business from its subsidiary Purina Petcare India for Rs123.5 crore. Separately, Fireside Ventures led a $10 million round of funding in pet care startup Supertails.
Earlier this year, Wiggles, a pet parenting firm acquired Capt Zack for an undisclosed amount, while home-grown pet food brand TailBlaze raised Rs 1 crore in funding.