US-based private equity (PE) firm L Catterton, a subsidiary of luxury goods conglomerate LVMH, has recently made a significant investment in Drools, an Indian pet food brand. The investment amount of $60 million values the company at an impressive $600 million and grants L Catterton a 10% stake in the brand.
This investment stands as one of the largest in India’s pet care startup segment, underlining the growing importance of the pet food industry. With the infusion of funds, Drools has ambitious plans to enhance its production capacity, optimize operations, and strengthen its distribution network. Additionally, the funding will be utilized for marketing efforts and expanding the company’s workforce to support future growth.
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Drools’ Recipe for Success: L Catterton Investment Ignites Ambitions to Conquer Russia and the US
Drools aims to extend its reach beyond online channels and venture into the offline market by partnering with retail stores. At present, the brand boasts a presence in over 34,000 retail outlets across India. In addition to physical retail, Drools also capitalizes on major ecommerce platforms and its own website to reach a wider consumer base.
Founded by Fahim Sultan in 2010, Company has achieved remarkable success and expanded its operations internationally. Australia, Israel, and the United Arab Emirates (UAE) are just a few of the more than 22 nations where the company now offers its products. In the coming year, Company plans to enter the Russian market, despite the ongoing conflict with Ukraine, and also has its sights set on the lucrative US market.
Fahim Sultan, the visionary founder of Drools, expressed his enthusiasm for the partnership with L Catterton, highlighting the company’s dedication to sustainable long-term growth as a key aspect of its overall strategy. According to him, “This alliance will open the door to a new phase of development as India‘s expanding pet market penetrates metros, Tier 1 cities, and Tier 2 cities. This financial achievement helps us to strengthen our market position and go on with our mission of improving the pet food sector.
Dr. Shashank Sinha, CEO and veterinarian at Drools, outlined the company’s plans for utilizing the funding. He expressed his excitement about securing the investment, emphasizing its vital role in driving the company’s growth and expansion strategies. With the help of their new partner, Drools plans to improve its production skills, increase the number of stores that sell its products, and put money into smart marketing plans.
Company takes pride in operating three state-of-the-art production facilities and a consolidated warehouse, covering an impressive 8 lakh square feet. The brand offers a wide range of 650 Stock Keeping Units (SKUs), with 50% of its prescription diet products falling under the Drools brand.
Anjana Sasidharan, a partner in L Catterton Asia, praised Drools for its unique differentiating factor of manufacturing high-quality products across various price points and ensuring their availability through multiple channels. Discover the unparalleled advantage of Drools – the ability to provide pet parents with premium products through all relevant channels. Whether you prefer online shopping through Amazon or Flipkart, or offline browsing at specialty vet shops, veterinary clinics or general trade stores, Drools has got you covered.
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The strategic investment by L Catterton serves as a significant milestone for Drools, propelling the brand into a new era of growth and development within the Indian pet food market. With enhanced production capabilities, an expanded retail presence, and strategic marketing initiatives, Drools aims to solidify its position as a leading player in the industry and continue making a positive impact on the pet food landscape.
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