Funding Milestone: How Much Did Drools Secure in Latest Funding?

Pets hold a special place in the hearts of people around the world. Whether it's the wagging tails of dogs or the gentle purrs of cats, these furry companions bring joy, love, and a sense of companionship to millions of households. As the bond between humans and their pets continues to strengthen, the pet industry has witnessed an unprecedented surge in demand for high-quality pet food and accessories. Startups have ridden this wave to earn profits and one such startup is Drools. 

What is the funding raised by Drools? 

Drools, a leading pet food brand, has successfully secured $60 million in funding from private equity firm L Catterton, solidifying its position as one of the major players in India's burgeoning pet care industry. This significant investment, which values Drools at $600 million, represents a notable milestone for the sector.

In an official press release, Drools announced its intention to utilize L Catterton's extensive expertise in the field and its strong brand-building capabilities to further strengthen its market presence in India's rapidly growing pet food industry. This collaboration with L Catterton also signifies the private equity firm's entry into the Indian pet care sector, following its successful investments in renowned consumer brands like FabIndia and Sugar Cosmetics.

What is the market share of Drools in the pet food market? 

Founded by Fahim Sultan in 2010, Drools has quickly established itself as a major player in the pet food market, boasting an impressive 38% market share. Its success has transcended borders, with exports reaching over 22 countries, including Australia, Israel, and the UAE. Looking ahead, Drools has ambitious plans to expand into the Russian market this year and is eyeing entry into the United States in the near future. 

To accommodate its growing customer base, Drools currently operates three production facilities, offering a diverse range of 650 Stock Keeping Units (SKUs), with 50% of the brand's offerings falling under the prescription diet category.

A Wide Product Portfolio and Online Dominance

Drools possesses a comprehensive portfolio of dog and cat food brands, including popular names such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum. This broad range of products has solidified Drools as the leading seller in its segment on Amazon, commanding a significant market share with a strong 100% e-commerce presence. In addition to online sales through various e-commerce platforms, Drools products are also available offline through a vast network of over 34,000 points of sale, encompassing specialty vet shops, veterinary clinics, and general trade stores.

Technological Advancements and Financial Growth

Demonstrating its commitment to innovation, Drools relies on advanced technology platforms such as SAP and Salesforce to streamline its operations effectively. These technological advancements enhance efficiency and support the company's rapid growth.

In terms of financial performance, Drools experienced exceptional growth during the fiscal year 2022. Its revenue from operations surged by an impressive 65.3%, reaching Rs 355.8 crore, compared to Rs 215.25 crore in the previous fiscal year. Furthermore, according to the company's standalone financial statement with the Registrar of Companies (RoC), its profits soared 4.5 times to Rs 35.78 crore in FY22 from Rs 7.9 crore in FY21. With its sights set on future success, Drools aims to double its revenue in the coming years.

Who are the market competitors of Drool? 

While Drools holds a strong position in the market, it faces competition from notable players such as Heads Up for Tails, Goofy Tails, and LUVIN. 

Heads Up for Tails, backed by Sequoia Capital, is another well-funded company in the industry. In August 2021, it raised $37 million in its maiden institutional round, further intensifying the competition in this rapidly expanding market.