What Investors Really Expect from India’s Fast-Growing Pet Care Startups

Pet care startups that receive significant funding have a responsibility to their investors to drive

growth, achieve profitability, and ultimately provide a return on investment. Investor Expectations

are clearly the Growth and scalability, Investors expect pet care startups to demonstrate rapid

growth and scalability, with a clear plan for expanding their customer base and increasing

Revenue & Profitability , They look for pet care startups to achieve profitability, either through

reducing costs, increasing revenue, or a combination of both by Return on investment they expect

either through an exit (such as an acquisition or IPO) or through dividend payments.

By understanding investor expectations and focusing on growth, profitability, and scalability, pet care

startups can build a strong foundation for success and create value for their investors.

The Indian pet care industry has seen significant mergers, acquisitions, and investments in recent years. Here are some notable deals:

Recent Mergers and Acquisitions:

• Nestlé Purina's acquisition of Drools: Nestlé Purina acquired a minority stake in Drools,

valuing the company at over $1 billion. This marks one of the largest investments in India's pet

care industry.

• Wipro Consumer Care Ventures, the venture capital arm of Wipro Consumer Care & Lighting,

has invested significant amount in Goofy Tails, D2C Holistic Pet Food startup marking its entry

in Pet Care ,The partnership is expected to leverage Wipro's strategic insights and operational

strengths to drive growth in the pet food market.

• Vetic: Raised $3.7 million in seed funding led by angel investor Lachy Groom to expand its

clinic network across Delhi NCR and Bangalore.

• Firelight Capital's acquisition of Snif-Snax: Firelight Capital acquired Snif-Snax, a pet snack

company, in August 2025.

• Supertails: Raised $15 million in Series B funding led by RPSG Capital Ventures, with existing

investors Fireside Ventures, Saama Capital, DSG Consumer Partners, and Sauce VC

participating.

• Peak XV Partners: Invested in Heads Up For Tails, a pet care retail chain.

• Verlinvest: Invested in Heads Up For Tails and other pet care startups.

• Right 4 Paws raised ₹14 crore in Series A funding to scale its science-led premium pet

nutrition business in India.

Exit Strategies:

1.Acquisition: Pet care startups may consider acquisition by a larger company as a potential exit

strategy.

2.IPO: Startups may also consider going public through an initial public offering (IPO) as a way to

raise capital and provide liquidity to investors.

3.Merger: Startups may consider merging with another company to create a more competitive

and sustainable business.

Here are some key obligations and considerations:

After receiving funds, a pet care startup has several obligations to its investors, including:

Utilising Funds Effectively:

1. Business growth: Use the funds to drive business growth, expand services, and increase

revenue.

2.Scaling operations: Invest in infrastructure, technology, and personnel to support growing

demand.

3. Marketing and customer acquisition: Allocate funds to marketing and customer acquisition

strategies to attract new customers.

Strategies for Meeting Investor Expectations:

1.Develop a strong business model: Pet care startups should develop a strong business model

that demonstrates a clear path to profitability.

2.Focus on customer acquisition: Startups should focus on acquiring new customers through

effective marketing and sales strategies.

3.Monitor and optimise operations: Startups should continuously monitor and optimize their

operations to reduce costs and improve efficiency.

4. Build a strong team: A strong team is essential for driving growth and achieving profitability.

Investor Communication:

1.Regular updates: Provide regular updates to investors on business progress, milestones, and

challenges. Sharing of monthly MOM .

2.Transparency: Be transparent about the business's financial performance, challenges, and

opportunities.

3.Governance: Establish a governance structure that ensures investor participation and oversight.

4. Discussing future plans and pivot if any , Investor opinion always matters

For startups to achieve the high ROI , KPI’s play a crucial role

Key Performance Indicators (KPIs):

1.Revenue growth: Pet care startups should track and measure revenue growth, including month-

over-month (MoM) and year-over-year (YoY) growth rates.

2.Customer acquisition costs: Startups should track the cost of acquiring new customers and

ensure that it's aligned with their revenue growth.

3.Customer retention: Retaining existing customers is crucial, and startups should track customer

retention rates and work to improve them.

4.Profit margins: Startups should track their profit margins and work to improve them through cost

optimisation and pricing strategies.

Return on Investment:

1.Revenue growth: Focus on driving revenue growth and increasing profitability.

2.Exit strategy: Work towards creating a strong exit strategy, such as an IPO or acquisition, to

provide a return on investment for investors.

By fulfilling these obligations, a pet care startup can build trust with its investors and set itself up

for long-term success.

Financial Management:

1.Budgeting: Create and manage a budget that aligns with the business plan and investor

expectations.

2. Financial reporting: Provide regular financial reports to investors, including income statements,

balance sheets, and cash flow statements.

3Cash flow management: Manage cash flow effectively to ensure the business can meet its

financial obligations.

Growth and Scalability:

1.Develop new services: Develop new services or expand existing ones to increase revenue

streams.

2. Build strategic partnerships: Build partnerships with suppliers, veterinarians, or other pet care

businesses to drive growth.

3. Hire and train staff: Hire and train staff to support growing demand and ensure high-quality

services.

What Pet Care Startups Should Look for in an Investor ??:

By understanding the role of a pet care investor, startups can better navigate the fundraising

process , A pet care investor plays a crucial role in supporting startups that provide innovative

solutions for pets and their owners, Pet care Startups should identify the right partners to support

their growth and success.Industry Expertise is very important , Pet care startups should look for

investors with experience and knowledge of the pet care industry who have strong network

connections in the pet care ecosystem and ensure investor's goals and values align with the

startup's mission and vision along with sound record.

Investors can support the development of new and innovative pet care products and services, -

Funding can help pet care startups scale their businesses and reach new markets creating an

Impact as Investors can make a positive impact on the companies success in a big way.

Types of Pet Care Investors:

1.Venture Capital Firms: Specialising in pet care investments, these firms provide funding and

support to startups.

2.Angel Investors: Wealthy individuals who invest in pet care startups, often bringing industry

expertise and network connections.

3. Corporate Venture Arms: Pet care companies investing in startups that align with their strategic

goals.

Written : Dr. Madhurita Gupta

Founder, Goa Angel Network