Drools Named First Indian Pet Firm Unicorn After Nestlé Deal

Homegrown pet food company Drools has taken the pet world by storm. The well-known start-up has become India’s first pet food unicorn following a minority investment from Swiss giant Nestlé S.A., parent company of Nestlé India.

While the exact numbers haven’t been made public, this investment takes its valuation past USD 1 billion, according to Drools.

This move is a rare moment for India’s pet-care space, which has seen far fewer billion-dollar startups compared to other consumer sectors. Venture funding in pet-focused businesses has been limited until now, and big exits have been even rarer.

Nestlé’s backing follows another investment from private equity firm L Catterton, which picked up a stake in Drools in June 2023. Despite now having two large investors on board, Drools says it will continue to run independently.

What Makes Drools Drool-worthy?

Drools was started in 2010 by entrepreneur Fahim Sultan. What began as a small venture is now one of the biggest names in India’s pet food market. The company sells its products through over 40,000 retail stores across the country and also exports to 22 countries.

It’s also built a strong presence online, especially in the cat food category, where it claims to be the market leader.

In a statement covered by Money Control, Sultan called the new milestone a reflection of the love and trust from pet parents across India. He also said Drools would continue to focus on nutrition-first products, built on science and designed for today’s more aware and health-conscious pet owners.

What Does This Mean For Nestlé?

For Nestlé, this investment marks a deeper push into India’s fast-growing pet and consumer care markets. While Nestlé already owns well-known global pet brands like Purina, its move to invest in Drools seems to be a bet on scaling a strong local brand with a wide distribution network and local manufacturing strength.

The timing of the deal is also significant. India’s pet food market is booming. More people are adopting pets, especially in urban areas, and they’re willing to spend more on premium food options. According to data from the Ministry of Commerce, pet food imports have more than doubled in the last five years and have gone up six times in the past decade.

Just in the first half of 2024, India imported $69.8 million worth of dog and cat food—up sharply from $25.5 million during the same period in 2019, and just $11.2 million in 2015.

With this deal, both companies stand to gain. Nestlé gets a stronger foothold in an expanding market, and Drools gets the kind of global backing that could help it grow even faster, both in India and abroad.