Drools, an Indian pet food brand, has secured a $60 million investment from L Catterton, a US-based private equity (PE) firm affiliated with LVMH. This investment values Drools at $600 million and grants L Catterton a 10% ownership stake in the brand.
This marks a significant milestone in India’s pet care startup sector, representing a substantial investment. Drools intends to utilize the funds to enhance its production capacity, streamline operations, and fortify its distribution network. Additionally, the funding will be allocated towards marketing initiatives and expanding the team through new hires, all aimed at facilitating the company’s future growth.
In addition, the pet food brand has plans to broaden its offline presence by entering retail stores. Currently, Drools boasts a wide distribution network encompassing 34,000 retail outlets throughout India. Moreover, Drools leverages major ecommerce marketplaces and its own website to facilitate online sales.
Established by Fahim Sultan in 2010, Drools has experienced remarkable growth on a global scale, successfully exporting its products to more than 22 countries, such as Australia, Israel, and the UAE. Despite the ongoing conflict with Ukraine, the brand intends to enter the Russian market this year. Furthermore, Drools has its sights set on entering the US market in the near future.
Fahim Sultan, the Founder of Drools, highlighted that the funding signifies the company’s strong emphasis on sustainable long-term growth, positioning it as a crucial element within its comprehensive 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 has revealed that it currently operates three production facilities along with a consolidated warehouse facility, covering an extensive area of 8 Lakh square feet. Within its product range, the brand offers an impressive selection of 650 Stock Keeping Units (SKUs), with 50% of the prescription diet originating from the brand itself.
“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.
