While Supertails looks to raise about ₹200 crore by the end of this year, Heads Up For Tails is eyeing an investment from domestic investment firm 360 One Asset over the next few months, according to multiple people familiar with the matter.
Vetic, a tech-enabled chain of pet clinics, is looking to raise a sizable round and has begun discussions with investors, they said, adding that some of these transactions may see existing investors part exit their stake.
Supertails and Vetic did not immediately respond to Mint’s requests for a comment. While 360 One declined to comment, Heads Up For Tails’ founder Rashi Narang denied the development.
Investor interest in India’s pet care industry surged in the years following the pandemic, driven by a wave of new pet adoptions and rising disposable incomes. In 2023, pet care startups raised a record $66.3 million across 16 rounds, led by one major transaction—Drool’s $60 million fundraise.
While 2023 saw a funding spike driven by Drool’s large deal, overall funding activity in 2024 was more broad-based, with fundraising at $17.9 million spanning 13 rounds, as per Tracxn.
“Pet ownership in India is estimated to be less than 10% of overall households, but growing at a rapid pace with rising incomes, especially among urban consumers. In developed economies, pet ownership can exceed three in four households, and that headroom for growth is reflected among the upper income segments in India,” said Devangshu Dutta, chief executive of Third Eyesight, a management consulting firm. He added that urban couples and singles in many cases are even opting to become “pet parents” instead of having children.
Platforms such as Supertails, Drools and Heads Up For Tails have been the big beneficiaries of this shift. Drools raised $60 million from LVMH-backed private equity firm L Catterton in 2023, while Supertails raised $15 million led by RPSG Capital Ventures in February last year.
Earlier this year, Mint reported that Heads Up For Tails has begun fresh talks to raise $40 million from new and existing investors such as Peak XV and Verlinvest, about four years after its last institutional round. While the exact size of the round is still being decided, the company intends to use the proceeds towards its expansion plans.
Similarly, Supertails, which is in talks to acquire Blue 7 Vets, a multispecialty veterinary clinic as part of its strategy to expand its offline presence, will also raise capital to fund the acquisition of new customers, investments in technology, and the expansion of healthcare services, including Supertails Pharmacy and build an omnichannel experience for consumers.
The company raised about $15 million in its series B funding round last year led by RPSG Capital Ventures and existing investors Fireside Ventures, Saama Capital, DSG Consumer Partners and Sauce VC.
Meanwhile, Vetic, which raised $3.7 million in a seed funding round led by angel investor Lachy Groom in 2022, aims to further bolster its geographical expansion of its clinic network across Delhi NCR and Bangalore regions.
Vetic’s round also saw participation from other angel investors including Utsav Somani, partner, AngelList India; Nitin Saluja, founder of Chaayos; Ritesh Agarwal, Abhinav Sinha, and Maninder Gulati of Oyo; Shiva Singh Sangwan, founder of 1947 Rise; Revant Bhate, CEO of Mosaic Wellness.
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Tailwinds
“Consumers are not only spending more money or buying products and services but also becoming conscious of quality and the differentiation between brands on offer, much as they would with products that they buy for themselves and their family members,” Third Eyesight’s Dutta said.
“The spend on pet food, pet products and care services is growing… These trends have resulted in a growing number of companies entering the market and covering different segments of products and services,” Dutta said.
Currently valued at $3.5 billion, India’s pet care industry is expected to grow significantly in the coming years, according to a report by Redseer Strategy Consultants in October 2024.
As more pet parents focus on their pets’ well-being, the demand for premium, specialized offerings will continue to rise, the report said, adding that the market’s growth trajectory presents opportunities for both established players and new entrants to tap into this dynamic sector.
