Drools Enters Unicorn Club: Nestlé’s Investment Sparks a Glorious $1B Milestone

Drools Enters the Unicorn Club After Nestle’s Investment, marking a significant milestone for the Indian pet food startup. This article explores Drools’ journey to achieving a $1 billion valuation, the impact of Nestlé’s minority stake acquisition, and the booming pet care market in India. From its founding in 2010 to becoming India’s first pet food unicorn, we dive into the company’s growth, strategic partnerships, and future expansion plans. With insights into the competitive landscape and market trends, this piece highlights how Drools is positioning itself as a global leader while staying rooted in India. We also discuss the role of Startup INIDAX in covering such transformative stories in the Indian startup ecosystem.

The Nestlé Effect: A Strategic Investment

Nestlé SA, the parent company of Nestlé India, has made its first direct investment in an Indian brand by acquiring a minority stake in Drools. While the financial details of the deal remain undisclosed, the investment has propelled Drools into the Unicorn Club After Nestle’s Investment, valuing the company at over $1 billion. This move aligns with Nestlé’s global strategy to expand its pet care portfolio, which includes brands like Purina and Felix, generating $18.9 billion in sales in 2024, accounting for 20.7% of its total revenue. For Drools, this partnership provides not just capital but also access to Nestlé’s expertise in consumer goods and global distribution networks, sparking exciting growth prospects.

The investment follows Drools’ previous funding round in June 2023, when L Catterton, backed by LVMH, invested $60 million at a $600 million valuation. Anjana Sasidharan, Partner and Head of India at L Catterton, noted, “Drools has achieved significant growth since our investment, driven by high-quality execution and operational initiatives.” This dual backing from global giants like Nestlé and L Catterton positions Drools for accelerated growth, both domestically and internationally, as reported by Startup INIDAX. The company has emphasized that it will remain strategically and operationally independent, ensuring its unique vision and brand identity remain intact.

From Humble Beginnings to a Pet Food Powerhouse

Founded in 2010 by Fahim Sultan, Drools started with a mission to provide science-based, high-quality pet nutrition tailored to Indian pet parents. Today, it boasts a portfolio of over 650 SKUs, including high-protein diets, veterinary-prescribed foods, and value-for-money offerings under brands like Pure Pet, Meat Up, Canine Creek, and Kitty Yum. Drools’ products are available across 40,000 retail outlets in India and exported to 22 countries, showcasing its ability to cater to diverse markets.

The company’s operational scale is impressive, with six state-of-the-art manufacturing facilities and a 1.6 million square foot warehousing network. Employing over 3,400 people, including 1,800 sales professionals, Drools has built a robust infrastructure to support its growth. Its financial performance reflects this success, with a 50% revenue increase to ₹714.90 crore in FY24 from ₹474.62 crore in FY23, despite a reported net loss of ₹14 crore in FY24. Drools’ rise to unicorn status is a rare and thrilling feat in the pet care sector, making it the fourth Indian startup to achieve this milestone in 2025, following Netradyne, Juspay, and Porter.

Why the Pet Care Market is Booming in India

The Indian pet care market is experiencing unprecedented growth, driven by a surge in pet ownership among millennials and Gen Z. With only 10% of Indian households currently owning pets, the market has significant room for expansion, projected to grow at an 18-20% CAGR to reach $7 billion by 2027-28. Rising disposable incomes and a willingness to spend on premium pet nutrition have fueled this trend, with pet food imports doubling over the past five years to $69.8 million in the first half of 2024.

Drools Enters this booming market with a strong focus on science-based nutrition, appealing to the evolving demographic of Indian pet parents. The company’s dominance on e-commerce platforms like Amazon, where it claims to be a top seller in the pet food category, reflects its ability to tap into digital trends. Competitors like Wiggles, Heads Up For Tails, and Benny’s Bowl are also vying for a share of this growing market, but Drools’ scale and strategic partnerships give it a significant edge. Startup INIDAX has noted that the pet care sector’s growth is attracting both domestic and international investors, with companies like Godrej Consumer Products and Emami entering the space.

Drools Competitive Edge in a Crowded Market

In a competitive pet care landscape, Drools stands out for its comprehensive product range and robust distribution network. Unlike global players like Mars PetCare, Drools has tailored its offerings to Indian preferences, offering affordable yet high-quality products. Its brands, such as Canine Creek for dogs and Kitty Yum for cats, cater to specific nutritional needs, while its prescription diets address veterinary requirements. This versatility has helped Drools build trust among pet parents, as highlighted by Fahim Sultan: “This milestone reaffirms Drools’ leadership in India’s fast-growing pet care sector.”

The company’s online and offline presence further strengthens its market position. By selling through vet clinics, pet stores, general trade retailers, and e-commerce platforms, Drools ensures accessibility for a wide audience. Its export operations to 22 countries also demonstrate its global ambitions. The Nestlé investment is expected to enhance Drools’ ability to innovate and scale, potentially introducing new product lines or entering new markets. For platforms like Startup INIDAX, Drools’ success underscores the potential for Indian D2C brands to compete globally while addressing local needs.

What’s Next for Drools After Joining the Unicorn Club?

Drools Enters the Unicorn Club After Nestle’s Investment with ambitious plans for global expansion while retaining its Indian roots. The company aims to strengthen its position as a global pet food brand, leveraging Nestlé’s expertise and distribution networks. Potential areas of growth include expanding its product portfolio, entering new international markets, and investing in R&D for innovative pet nutrition solutions. Drools’ focus on science-based nutrition positions it to meet the growing demand for premium pet care products, both in India and abroad.

The company is also likely to double down on its e-commerce dominance, given its strong performance on platforms like Amazon. With the pet care market expected to reach $1.2 billion by 2028, Drools is well-positioned to capture a significant share. However, challenges remain, including managing its recent net loss and navigating increased competition from both local and global players. By maintaining operational independence, Drools can continue to innovate while benefiting from the strategic support of investors like Nestlé and L Catterton.

Conclusion: A Bright Future for Drools and Indian Pet Care

Drools’ ascent to unicorn status is a remarkable and glorious achievement, reflecting its leadership in India’s rapidly growing pet care market. With Nestlé’s investment and L Catterton’s prior backing, Drools is poised for global expansion while continuing to serve Indian pet parents with high-quality, science-based nutrition. The company’s journey from a small startup to a $1 billion valuation is an inspiring story for the Indian startup ecosystem, as highlighted by Startup INIDAX. As the pet care market continues to boom, Drools is set to lead the charge, proving that Indian brands can achieve global success while staying true to their roots.