L Catterton, a global consumer-focused investment firm, has made an investment of $60 million in homegrown pet food company Drools. The deal which marks the first external round of funding raised by Drools, has valued it at $600 million.

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“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, L Catterton Asia.

It will use the fresh funds to enhance the company’s existing manufacturing capabilities, meet the growing demand for high-quality pet food products, accelerate its retail plan, bolster the marketing budget, and attract top talent.

“L Catterton’s expertise and ability to create value for companies in the sector is well known across the industry and will help us unlock a new phase of growth. We are keen to leverage its consumer insights, operating know-how, as well as commercial network to further strengthen our brands and recruit talent. India’s developing pet market continues to mature across metros, as well as Tier 1 and Tier 2 cities, and we see many more years of secular growth ahead,” said Fahim Sultan, Founder, Drools.

The pet food company claims to have quadrupled its revenue over the past three years by building an omni-channel pan-India pet food business. Its portfolio of dog and cat food brands such as Drools, its flagship brand, as well as Pure Pet, Meat Up, Canine Creek, and Kitty Yum.

As per the company, the pet care market is expected to grow by approximately 20 percent annually over the next five years to reach over $1.2 billion in 2028 on the back of increasing pet adoption as the country becomes more urbanised and household sizes become smaller. Macro trends such as rising income levels and the increasing humanization of pets are also leading pet owners to spend more on their pets, especially on buying packaged food instead of preparing home-cooked meals, it added.

L Catterton which has been investing in pet food businesses like — Butternut Box, Canidae, Harringtons, Instinct, JustFoodForDogs, Wagg — has now forayed into the sector in India. L Catterton has invested in retail companies including ethnic wear and home-decor company FabIndia, and beauty-care startup Sugar.

“This is an exciting time to be entering the country’s pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business,” added Sasidharan.

(Edited by : Sangam Singh)