We did a deep-dive into the pet industry and compared the global landscape to India and end with key take aways on our view of the investment in this space.

1. PetTech | Feb-22

2. Key Takeaways
2
• 2020 and 2021 have been momentous years for the pet industry: people have adopted more pets, and increased pet
humanisation has led to premiumisation of new products and services
• Funding aplenty has been witnessed in the PetTech sector in 2021 amounting to $746MM, with exits constituting over
$300MM
• The global pet market for 2021 stands at $154BN, which is growing at a healthy rate of 7-8% YoY. The Indian pet market for
2021 stands at $494MM, growing at 30% YoY
• Although India is still at a nascent stage in terms of market size, the increase in the number of pet parents and the increase in
their associated needs and wants suggests the Indian pet size market will grow multifold
• The current wave of Indian pet companies are being built for two broad reasons: companies mirroring the success of a US
company or a personal problem that the founder is solving for
• Of the 31MM pets in India, there are only 200,000 pet parents who spend a considerable amount ($1,000+) per year on their
pets. As this bracket of pet parents increases with GDP per capita, India’s pet market, which has grown gradually will grow
suddenly

3. The global pet tech industry has received $3.8BN in funding, while funding
for 2021 represents a 31% CAGR from 2018
3
Source: Tracxn
CY18 CY19 CY20 CY21
No of Deals Total Funding ($MM)
746
530
525
335 49
44
65
47 49
44
65
47
66
208
242
416
2,500
Total Pet Funding ($MM) Recipient Countries (Total $MM) # of Rounds
307
53
13
61
31
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4. In fact, searches for “buying a puppy” went up 3x at the onset of the
pandemic
4
Source: Lerer Hippeau, Google Trends
“Buy a Puppy” Google Trends Search Brazil - 102 Small Dogs per 1,000 People
10/01/21 14/02/21 21/03/21 25/04/21 30/05/21 04/07/21 08/08/21
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5. Increased pet ownerships and premiumisation with humanisation has
ushered in a new era for the pet industry
5
Source: Lerer Hippeau, IDEXX
Rise of Gen Z and Millennial Pet Ownership Staggering Statistics Globally
•Younger generations (~60% in 2025) demonstrate a
higher willingness to spend on pets, and will
contribute to continued growth
• More households in America now have a dog than a
child
•The pet industry is recession resilient. During the
recession of 2001 and 2008, pet spending grew 7%
and 5% respectively
2018 2025
27%
11%
31%
34%
22%
26%
18%
26%
1%
3%
Builders Baby Boomers Gen X
Millenials Gen Z
45%
58%
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6. The needs and wants of the average pet parent have increased, as is evident
with the wide array of products and services now available
6
New Technologies and Consumer-Friendly Business Models
Fi Smart Dog Collar with GPS Tracking
Furbo’s In-Home Pet Camera
BarkBox Accessories & Treats Subscription Box
Wiggles Pet Sanitiser
Moncler Dog Jackets
Flying Fur Pet Grooming on Wheels
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7. As of 2021, the global pet market was valued at $150BN+ growing 7-8% YoY
7
Source: Euromonitor
Global Pet Market Size ($BN) Global Pet Market Breakdown ($BN)
2016 2021 2026P
200
154
121
Dog Food
43%
Cat Food
26%
Other Pet Food
3%
Pet Products
28%
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8. The United States alone accounts for 2/3 of the global pet market, with 66%
of US households owning at least one pet
8
Source: AlphaWise, Morgan Stanley Research
United States Pet Market Size ($100BN) United States - Pets per Household
Any Pet Dog Cat Fish Small Pet Livestock Horse Others
4%
2%
2%
6%
9%
34%
47%
66%
Pet Food
39%
Supplies, Live Animals & OTC Medicines
20%
Vet Care
30%
Other Services
11%
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9. Within the broader pet market, pet tech is largely driving its growth with
~$750MM raised by pet tech companies in 2021
9
Source: Lerer Hippeau
Pet Tech Categorisation US Pet Tech Landscape
Pet Food and Products
Pet Services
Pet Health/Medication
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10. Pet Food
10
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11. In the food
category, the
incumbents Mars
Petcare and Nestle
Purina accounted
for $33BN of pet
food sales in 2020
11
Incumbents dominate the market - Revenue 2020 ($BN)
Source: Statista
1.0
1.5
1.7
2.5
2.9
15.4
18.1
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12. 12
$17MM
$65MM
$49MM
$55MM
However, pet parents in the US are changing their pets’ diets to more personalised
food due to the increased health benefits and better buying experiences
$150MM Funding in the last 2 Years Key Drivers
Education of health risks associated with
packaged foods
Personalisation based on the pet’s physical
characteristics and medical history
Better Shopping Experiences for the pet parent
through subscription models
Source: Tracxn
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13. The increasing awareness of pet obesity and gastrointestinal problems are
causing pet parents to make informed decisions regarding choice of pet food
13
Obesity: An Urgent Threat Obesity: Affecting your Dog Obesity: Affecting you
Source: The Farmer’s Dog, Association for Pet Obesity Survey
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14. The superior nutritional value of fresh pet food is reflected in improved
digestive health and attainment of optimal weight
14
Criteria
Packaged
Food
Fresh
Food
Unprocessed, Natural Ingredients
Superfood: cod liver oil, chia seeds
Nutritional Value
Cooked by hand in small batches
No Preservatives or Harmful Fillers
USDA Regulated Kitchen
Vet Formulated for all Life Stages
Balanced, science-led nutrition
High Quality Meat
No added hormones or antibiotics
Packaged Food v/s Fresh Food
Source: The Farmer’s Dog
Pet Parent Reviews
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15. The Farmer’s Dog is a fresh, human-grade dog food subscription service that
personalises meals based on a dog’s breed, activity level and health requirement
15
KYD - Know Your Dog
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16. Overall, personalised and subscription focused pet food companies have
built a strong foundation for further growth
16
Grading Framework
Grading Metrics Grade Reason
Must Have v/s Nice to Have Must Have Personalisation, subscription and health bene
fi
ts
Existing Recurring Behaviour v/s New
Recurring Behaviour
Existing Recurring
Behaviour
Pet parents are perfect customers for subscription
Conversion from Trial to Paid Subscriber Medium Increasingly competitive landscape
Subscription Gross Pro
fi
t High
Companies with 50%+ annual subscription gross
pro
fi
t can get to a very high enterprise value
Win-Back Potential Limited High brand stickiness once a customer makes a shift
Network Effects High Strong word of mouth and increased customer data
Source: Lightbox Estimates, “Next Big Thing”
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17. As 50% of human
food consumption is
restaurant food in
the US, the pet
industry is likely to
follow a similar trend
17
For what is
considered fresh
food in India is
interpreted very
differently in the
United States
50%
92%
50%
8%
Restaurant Food
Home-Cooked Food
Under-Penetrated Food Services Industry in India
Source: Redseer Research (2020)
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18. Pet Products
18
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19. Chewy, valued at ~$20BN, is the largest pure-play pet e-tailer in the United
States offering 75,000+ products with 2,500 brand partnerships
19
Amazon for Pets Cat Accessories
LTM Oct’21 Revenue Active Customers
$8.5BN 20.4MM+
Net Sales per Customer
$419
CY21 Gross Margin
27%
Source: Company Filings
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20. In the pet space, Chewy beats Amazon with its vertical focused marketplace
and emphasis on customer experience
20
Source: Forbes
24-hour telephone customer
service
No voice mail, with a guarantee
that Chewy customer service
answers the phone in 4 seconds
Superior packaging with “over
carton” for wet food
Pet parents have complained of
dented cans from Amazon
Quality Customer Service
Packaging
Veri
fi
cation of Sellers
No Third Party Sellers on
Chewy
Ensures legitimacy of products
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21. Chewy’s revenues
have grown 4x since
CY17 due to
increased transacting
users
21
Chewy Revenue ($BN)
Source: CapIQ
CY17 CY18 CY19 CY20 LTM Oct'21
Gross Margin Revenue ($BN)
8.5
7.1
4.8
3.5
2.1
27%
26%
24%
20%
18%
27%
26%
24%
20%
18%
4x
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22. Bark is a vertically integrated, data driven brand capturing the pet products
space through subscription based offerings
22
Mar'19 Mar'20 Mar'21 LTM Sep'21
Subscriptions (K) Revenue ($MM)
455.2
378.6
224.3
191.4
1,800
1,453
1,202
1,046
1,800
1,453
1,202
1,046
Bark Subscriptions and Revenue ($MM) Bark v/s Chewy Valuation Comparison
Company
MCap
($MM)
EV
($MM)
LTM Sales
($MM)
EV/
LTM Sales
707 506 455 1.1x
18,751 18,425 8,545 2.2x
Mean 1.7x
Source: CapIQ
Valuation as of 18.01.22
2.5x
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23. Pet Services
23
Pet Services
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24. Pet services broadly
consist of five
subcategories:
grooming, walking,
training, boarding
and veterinary
services
24
Grooming Walking
Training Boarding
Vet Services
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25. Rover is the world’s largest online marketplace for pet services, connecting pet
parents with pet providers offering boarding, sitting and walking services
25
Pet Parents Need
Environment where their pets are
happy and stress-free
Con
fi
dence and reassurance that
their pets are receiving personalised
care
Tech Enabled ease of access and
management
Care that suits the pet parent’s budget
and lifestyle
Pet Providers Want
Flexibility and Empowerment
Presence of pets in their lives
Meaningful earnings (side income)
Access to a community of pet parents
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26. 26
Pet Health
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27. Given the inaccessibility of vets outside of working hours and unpredictability
of a pet’s health, Airvet steps in with 24/7 border-less teleconsulations
27
How Airvet Works Airvet Helps
What do I do?
Pet Parents Helped
150K+
Veterinary Bills Saved
$10MM+
ER Visits Avoided
50%
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28. The United States
and Europe both
have large
developed pet
markets, which
takes care of the
needs and wants of
pets and pet parents
28
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29. But, where does
India stand?
29
10/01/2107/02/2107/03/2104/04/2102/05/2130/05/2127/06/2125/07/2122/08/21
“Buy a Puppy” Google Trends Search
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30. In 2021 alone, the Indian PetTech market received $50MM+ in funding, which
is 5x greater than the industry’s cumulative funding prior to 2021
30
Company Year Founded
Date of Last
Funding Round
Total Funding
Raised ($MM)
Last Valuation
($MM)
Notable
Investors
2008 Aug-21 50 -
Sequoia,
Verlinvest
2015 Nov-21 7 16
Sixth Sense
Ventures
2018 Sep-21 9 16 Anthill Ventures
2021 Sep-21 3 - Saama, DSG
2017 Oct-21 2 6
APAR Industries,
Angels
2019 Sep-21 0.3 2 9Unicorns
Source: Tracxn
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31. Although India’s pet market is 200x smaller than that of the US, it is projected
to grow at a 30% CAGR, which is the fastest in the world
31
India Pet Market Size ($494MM) United States Pet Market Size ($100BN)
Supplies, Live Animals & OTC Medicines
20%
Vet Care
30%
Other Services
11%
Pet Food
39%
Pet Products
15%
Pet Food
85%
Source: Euromonitor
• As of 2021, India has 31.7MM pets, comprising 27.7MM dogs
• <10% of the market is digitised
• 30% growth in pets during the pandemic
($74MM)
($420MM)
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32. Given India’s nascency, the Indian pet market still has the potential to outdo
spending per capita on beauty and personal care products
32
Beauty & Personal Care Market Size ($BN)
28
18
91
$13
$278
$1BN Online BPC
Market Size
FY20 FY20 FY25E
$4.4BN Online BPC
Market Size
$1.2BN
$1.2BN
$100MM
Pet Market Size ($BN)
1.7
0.5
100.0
$1,190 $15
CY21 CY21
$56
Assuming 30% CAGR with 31MM pets
CY26
Source: Lightbox Estimates, Euromonitor, Avendus
$22
Per Capita
BPC Spend
Per Pet Spend
(31MM Pets)
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33. The Indian PetTech landscape is broadly segregated into food, products
and services
33
India PetTech Landscape
Products/Food Services/Health
Increasing Services
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34. 34
Services
Health
Food
US India
Products
US India
US India
US India
The majority of Indian PetTech startups mirror their successful US
counterparts
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35. Mars Petcare captures 40% of the Indian pet food market and expects its
sales to increase over 30% YoY
35
India Pet Food Market 2021 ($420MM) Mars Pet Care India Revenue ($MM)
Cat & Other Pet Food
15%
Dog Food
85%
Source: Euromonitor, Economic Times
FY19 FY21
168
133
($357MM)
($63MM)
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36. Competing with Mars Petcare, new age companies have created India first
products previously unavailable in the Indian pet market
36
Standard Lamb Dog
Biscuits
HUFT Oven-Baked Apple and
Cinnamon Vegetarian Biscuits
Long Lasting Dental Chews
made from Himalayan Yam
Vegetarian Fresh Meals
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37. Heads up for Tails, a first mover in the Indian pet space, unlocks quality pet
products into the Indian market through an omnichannel approach
37
HUFT Revenue ($MM) HUFT Store
Of
fl
ine Sales 60% v/s Online Sales 40%
Pet Products
5,000+
Brands
80
India First Products
100
Cities
10
Stores
45
Spas
25+
FY19 FY20
6.5
3.0
Source: VCCEdge
2x
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38. The majority of Indian PetTech startups mirror their successful US
counterparts
38
Services
Health
Food
US India
Products
US India
US India
US India
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39. While some companies have chosen to go product first, PawPurrfect has
created an on-demand service first company
39
Urban Company for Pets?
I’m getting you a
walker on
PawPurrfect
• First mover in the organised pet services category
• “Large blue ocean territory with great untapped potential”
Of
fl
ine Dog Walker
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40. 40
Services
Health
Food
US India
Products
US India
US India
US India
The majority of Indian PetTech startups mirror their successful US
counterparts
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41. What isn’t captured
in India’s $494MM
pet industry is the
size of the vet
market, which
remains largely
fragmented
41
Currently, the vet
market comprises
small, standalone
clinics that are
unorganised
Tremendous Opportunity to Organise the Fragmented Vets in India
Assumption of Formalising Vet Services in India
30%
US Vet Services
$100BN
US Market Size
$30BN
Vet Contribution
$494MM
India Market Size
*excludes vet services
$148MM
$642MM
Market Size
Completely
Unorganised
Scale per month INR 20,00,000/ $ 26,000 INR 60,00,000/ $ 78,000
Source: The Ken, Euromonitor
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42. Supertails is a platform that supports the pet parent community by providing
reliable veterinary care, while also acting as a product marketplace
42
Consult a Vet Virtual Training
Hours of Training
2,000
Pets Trained
500+
Certi
fi
ed Trainer
Internationally
Consultations
3,500+
Specialists
15
Reviews
4.9*
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43. Wiggles has identified ignorance of basic pet health as the primary problem
they’re solving for, though their products and services
43
Wiggles‘ Range of Products
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44. Key Takeaways
44
• 2020 and 2021 have been momentous years for the pet industry: people have adopted more pets, and increased pet
humanisation has led to premiumisation of new products and services
• Funding aplenty has been witnessed in the PetTech sector in 2021 amounting to $746MM, with exits constituting over
$300MM
• The global pet market for 2021 stands at $154BN, which is growing at a healthy rate of 7-8% YoY. The Indian pet market for
2021 stands at $494MM, growing at 30% YoY
• Although India is still at a nascent stage in terms of market size, the increase in the number of pet parents and the increase in
their associated needs and wants suggests the Indian pet size market will grow multifold
• The current wave of Indian pet companies are being built for two broad reasons: companies mirroring the success of a US
company or a personal problem that the founder is solving for
• Of the 31MM pets in India, there are only 200,000 pet parents who spend a considerable amount ($1,000+) per year on their
pets. As this bracket of pet parents increases with GDP per capita, India’s pet market, which has grown gradually will grow
suddenly
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45. 45
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46. thank you
46