Indian Pet Food Brand Drools Raises $60 Mn At $600 Mn Valuation

US-based private equity (PE) firm L Catterton (LVMH) has invested $60 Mn in the Indian pet food brand, Drools, at a valuation of $600 Mn. With the investment, L Catterton will get a 10% stake in the brand.

This is one of the largest investments in India’s pet care startup segment. With the funding, Drools aims to ramp up its production capacity, streamline operations and strengthen its distribution network. The funding will also be deployed towards marketing and hiring to support future growth.

The pet food brand will also look to expand its offline reach via retail stores. Currently, Drools claims to have a presence across 34,000 retail outlets in India. Drools also sells online via major ecommerce marketplaces and its website.

Founded by Fahim Sultan in 2010, Drools has since expanded globally, exporting its products to over 22 countries, including Australia, Israel and the UAE. The brand also plans to enter the Russian market this year (despite the ongoing conflict with Ukraine) and the US market soon.

Fahim Sultan, the founder of Drools, said that the funding emphasised the company’s commitment to sustainable long-term growth as a key element of its overall strategy.

“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,” added Sultan. 

Dr Shashank Sinha, CEO and veterinarian at Drools laid down the company’s plans with the funding, saying, “We are thrilled to have secured this funding, which will play a vital role in driving our company’s growth and expansion strategies. With the support of our new partner, we will strengthen our production capabilities, expand our retail footprint, and invest in strategic marketing initiatives.”

The pet food brand said it operates three production facilities and a consolidated warehouse facility spanning 8 Lakh square feet, offering 650 SKUs, with 50% of the prescription diet coming from the brand.

“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 speciality vet shops, veterinary clinics, and general trade stores,” commented Anjana Sasidharan, a partner in L Catterton Asia.