Indian Broiler Group-owned pet food company Drools Pet Food Pvt Ltd on Tuesday said that it has raised around $60 million (nearly Rs 490 crore) from global consumer-focused investment firm L Catterton, which is backed by Paris-based luxury brand LVMH Moët Hennessy Louis Vuitton.
The company will leverage L Catterton’s expertise in the sector to further strengthen its position as the largest domestic player in India’s burgeoning pet food market, Drool and L Catterton said in a joint statement.
“Partnering with L Catterton will enable us to enhance our position in the market as we continue our journey towards positively impacting the pet food sector…we are keen to leverage its consumer insights, operating know-how, as well as commercial network to further strengthen our brands and recruit talent,” said Drools founder Fahim Sultan.
Founded by Sultan in 2010 with a focus on pets’ nutrition, health, and welfare, Drools sells its products under various other brands, including Pure Pet, Meat Up, Canine Creek, and Kitty Yum.
Drools claims that it is one of the fastest-growing pet food companies in South Asia and has also established an international footprint over the past decade. At present, the company exports its products to over 20 countries.
“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 specialty vet shops, veterinary clinics, and general trade stores,” said Anjana Sasidharan, partner at L Catterton Asia.
The company has almost quadrupled its revenue over the past three years by building an omni-channel pet food business across India. In the financial year ended March 2022, the company’s net profit grew nearly 5x to Rs 35.8 crore from Rs 7.9 crore in FY21 on the back of an impressive surge in its revenues.
Drools’ operational revenue stood at Rs 355 crore in FY22, up 65% from Rs 215 crore in the fiscal before, as per VCEdge, the data-intelligence platform of VCCircle.
Meanwhile, L Catterton, a consumer-focused investment firm managing approximately $33 billion of equity capital across three multi-product platforms: private equity, credit, and real estate, has built significant exposure in the pet food space across the world. Its current and past investments in the sector include Butternut Box, Canidae, Harringtons, Instinct, JustFoodForDogs, Lily’s Kitchen, Old Mother Hubbard, Partner Pet, Petlove, Pure & Natural, Rachael Ray Nutrish, and Wagg.
L Catterton, which was founded in 1989, has a team of more than 200 investment and operating professionals across 17 offices. It has made over 250 investments in consumer brands, including Reliance Jio, FabIndia, Future Lifestyle Fashion, Sugar Cosmetics, and Genesis Luxury, among others.