Supertails, a Bengaluru-based startup specializing in petcare products and services, has secured $15 million (around INR 125 crore) in equity funding. The round was led by RPSG Capital Ventures, with participation from the company’s current investors including Fireside Ventures, Saama Capital, DSG, and Sauce VC.
The funding will be allocated towards offline expansion, product scaling, customer acquisition, and the enhancement of its healthcare service, Supertails Pharmacy. The company plans to introduce trial stores in a combination of metropolitan and tier-I cities such as Bengaluru, Mysore, or Ahmedabad. Presently, Supertails lacks physical retail outlets.
“We will have to think of multiple stores in multiple localities. In the next two quarters, the idea is to have five to seven stores. And once we are able to crack that model, we’ll have at least 25 stores in the next two years,” said Varun Sadana, the Co-Founder.
Established in 2021 by Varun Sadana, Aman Tekriwal, and Vineet Khanna, the company provides an extensive array of pet supplies including toys, accessories, and pet food. Additionally, it offers online veterinary consultations, pet training services, and pet pharmacy services nationwide, serving over 18,000 pin codes in India.
The company primarily operates via its website, with 70% of its revenue attributed to food and food-related products. The remaining 30% is sourced from non-food items, with the healthcare sector contributing 10% to its overall revenue.
The company aims to achieve INR 100 crore in revenue by the end of FY24. According to regulatory filings submitted to the Registrar of Companies (RoC), Supertails generated operating revenue of INR 33 crore in FY23, accompanied by a net loss of INR 30 crore. During that year, the company allocated INR 12.5 crore towards marketing expenditures, which accounted for over a third of its operating revenue.
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“Products like pharmacy, creating good-quality curated non-toys and accessories is what the consumer is looking for. They obviously sell a lot and at the same time they bring in profitability to the company as well,” said Sadana.
Backed by angel investors such as Kunal Shah, the Founder of Cred, and Varun Alagh, the Co-Founder and CEO of Mamaearth, the company is targeting an annualized revenue run rate (ARR) of INR 500 crore within the next two years. Sadana mentioned that the company is presently achieving an ARR of INR 120 crore.
“The idea is to keep building this business in India itself. We don’t intend to take it outside the country in the next two years as a strategy because we feel there is a very large market out there,” Sadana said. The addressable petcare market in India is worth around $5 billion, he said.
Commenting on the investment, Abhishek Goenka, Managing Partner, RPSG Capital Ventures said, “With increasing disposable income and a rising trend in pet parenthood, the pet care industry holds significant potential in the future. As we expect India’s pet economy to grow over the next decade, Supertails’ expansion aligns perfectly with the current landscape.”
Kanwaljit Singh, Founder and Managing Partner at Fireside Ventures, added, “Catering to the ever-evolving needs of Indian pet parents, Supertails has successfully managed to build a full-stack platform offering for its consumers. We look forward to seeing them strengthening their position in the Indian pet care market and fulfilling their aim of creating a stronger pet care community.”
The company’s rival, Peak XV Partners-backed Heads Up for Tails (HUFT), is set to tap into the international market this year. In September last year, it was reported that HUFT plans to strengthen its offline footprint by launching new stores in tier-II and tier-III cities. As of September, HUFT had a network of 80 stores and aims to increase it to 130 by FY25.
Supertails last secured a funding round of $10 million in November 2022, led by Fireside Ventures.
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