Bengaluru-based natural pet treat company Khanal Foods, which runs brands like Dogsee Chew and Himalyan Natives, said on Wednesday it has raised Rs 50 crore in a Series A round from Mankind Pharma along with existing investor VC fund Sixth Sense Ventures.
This marks Mankind Pharma’s entry into the pet food category. Sixth Sense Ventures had also earlier participated in the company’s pre-series A funding in November 2021.
Founded by the husband-wife duo Bhupendra Khanal and Sneh Sharma in 2015, the pet treat brand makes vegetarian dog treats that parallel rawhide bones. The company had in November, raised $7 million, in its Pre-Series A funding round from Sixth Sense Ventures.
Its treats, according to Bhupendra Khanal, are "natural, human-grade, and protein-rich, which have made them a success with pet parents". He added it is now the country's fourth largest pet food exporter and sends out its products to 30 countries. “Mankind pharma has an established history of creating highly successful consumer products. Having the backing of such a giant is a huge vote of confidence for us and we look forward to learning from their expertise,” Khanal said. The investment will primarily be used towards brand building, research, and building a strong distribution network.
Arjun Juneja, chief operations officer of Mankind Pharma said, “The trust that people have shown in the brand has strengthened our confidence to invest in it. We have always believed in innovation and, with brands like ours that are innovative and young, we see the future of India.”
Nikhil Vora, Founder and CEO of Sixth Sense Ventures added, “With their 100% Natural & Vegetarian offerings, Dogsee Chew is uniquely positioned to make the most of the current global trends in the pet care industry."
Sneh Sharma said Sixth Sense Ventures has been a great partner for the company. "We are excited to be deepening our partnership with this round. It speaks a lot about the trust and comfort we have established between us in such a short span of time," she said.
In the past, brands like Heads Up For Tails, Wiggles and Supertails have raised funds. Heads Up For Tails, for instance, has raised $37 million in Series A in August last year while Wiggles raised $5.5 million in pre-series A round led by Anthill Ventures in October last year. Supertails raised $2.6 million and an additional undisclosed amount in a Pre-Series round in July last year. According to research company Euromonitor International in 2021, pet food accounted for Rs 3143.03 crore of the market whereas pet products took Rs 558.96 of the pie. The industry was growing at 2016-2021 15% CAGR but is now projected to grow at 30% CAGR in 2021-2026.
