SUMMARY
Emami acquired the stake in an all-cash deal, but did not disclose the financial details of the deal
Cannis Lupus is a Gurugram-based startup that offers food, supplements and other pet care products
Cannis Lupus will focus on the fast-growing pet care segment with its Ayurvedic range of solutions for common and recurrent ailments in pets, especially dogs
Personal care brand Emami has picked up a 30% stake in pet care startup Cannis Lupus in an all-cash deal, the company said in a regulatory filing without disclosing the financial details of the transaction.
“This is to inform you that the Company (Emami) has entered into an agreement for subscription of 4,522 equity Shares of Cannis Lupus Services India Private Limited, equivalent to 30% of shareholding in the company,” Emami said.
The acquisition could be attributed to Emami’s larger strategy of targeting the new-age D2C commerce and to make a splash in the nascent pet care space.
“Cannis Lupus under the brand “Fur Ball Story” would thus be focusing on the fast-growing pet care segment with its Ayurvedic range of solutions for common and recurrent ailments in pets, especially dogs,” Emami said.
The move will leverage Cannis Lupus’ experience in the industry and will enable Emami to take a plunge in the space without having to build the infrastructure from ground up.
“Pet care segment in India is witnessing rapid growth…The brand, Fur Ball Story, offers unique Ayurvedic products for well-being of the pets and meets the emerging consumer needs and aspirations,” Emami Vice Chairman Harsha V Agarwal said.
Cannis Lupus, founded in 2019 by Animesh Katiyar and Srishti Sharma, is a Gurugram-based startup that offers food, supplements and other pet care products.
The startup reported a turnover of INR 23 Lakh in the financial year 2019-20 (FY20). Its turnover stood at INR 19 Lakh mark in FY21 and INR 22 Lakh in FY22.
Emami Group is one of the major fast moving consumer goods (FMCG) companies in the country with a market cap of more than INR 20,000 Cr. Taking a cue from the smaller D2C brands that take up lesser time to launch new products and to diversify its portfolio, Emami has been investing and adding new startups to its fold.
In March this year, Emami picked up a 19% equity stake in nutrition-focused D2C FMCG startup TruNativ for an undisclosed amount. In June last year, the company invested another INR 50 Cr in men-focused grooming brand, The Man Company.
The acquisitions are also part of a major succession plan underway at the company. In May, the sons of the two cofounders – Harsha V Agarwal and Mohan Goenka – took over the reigns of the company.
According to a report, India’s pet care market is projected to cross the INR 7,500 cr mark by 2026, led by an increasing demand for such products.
Pet care startups have also attracted a lot of interest from the investors, drawing in huge sums of capital to scale up operations. The market is led by players such as Heads Up For Tails (HUFT), Supertails, Dogspot, Wiggles, Doggie Dabbas, among others.
In April, pet care app Wagr raised INR 4.2 Cr in a strategic funding round led by Inflection Point Ventures. Mumbai-based HUFT raised $37 Mn in a Series A funding round led by Verlinvest and Sequoia Capital India last year.
