Petfood startup Drools raises $60M Funding from L Catterton to Fuel Growth

Pet food start-up Drools has raised $60 million in funding from global investment firm L Catterton, marking its first external round of funding and valuing the company at $600 million. Drools aims to leverage L Catterton's expertise to strengthen its position as India's largest domestic player in the pet food market.

The company is known for manufacturing high-quality pet food products across various price ranges and making them available through online platforms like Amazon and Flipkart, as well as over 34,000 offline points of sale.

The funding will be used to enhance Drools' manufacturing capabilities, meet the increasing demand for premium pet food, accelerate its retail plan, boost marketing efforts, and attract top talent.

Drools plans to capitalize on L Catterton's consumer insights, operating knowledge, and commercial network to strengthen its brands further and recruit skilled professionals. The company's revenue has quadrupled in the past three years, driven by its omnichannel presence and popular brands such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum.

The pet care market in India is expected to grow by approximately 20 per cent annually over the next five years, reaching over $1.2 billion by 2028. Factors contributing to this growth include increasing pet adoption, urbanization, smaller household sizes, rising income levels, and the trend of pet owners choosing packaged pet food over home-cooked meals.

L Catterton, known for investing in pet food businesses globally, including Butternut Box, Canidae, Harringtons, Instinct, JustFoodForDogs, and Wagg, has now entered the Indian market through its investment in Drools. The firm has a diverse investment portfolio, including retail companies like FabIndia and Sugar.

Anjana Sasidharan, Partner at L Catterton Asia, stated, "This is an exciting time to be entering the country's pet food market, which we believe is at an inflection point." Sasidharan expressed enthusiasm for working closely with the Drools team to further scale their business.

With its strong product portfolio, wide distribution network, and the support of L Catterton, Drools is well-positioned to capitalize on the growing pet food market in India. The company aims to solidify its position as the leading player in the domestic market and continue its growth trajectory in the coming years.

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