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Business of Fashion
2 days ago
- Business
- Business of Fashion
Exclusive: Everlane's New CEO Gets Real About Its Ambitions
Whoever decided to step into the top job at Everlane was always going to have their work cut out for them. One of the stars of the 2010s direct-to-consumer boom, by 2022 the basics brand, known for its $30 organic cotton T-shirts and transparent pricing, was struggling to scrape together enough cash just to cover inventory. Andrea O'Donnell, who succeeded founder Michael Preysman as CEO in 2021, got the 14-year-old apparel maker back to profitability in 2023. But growing sales again proved a tougher challenge. A revamp of the brand's marketing and product to emphasise style, not just its pricing, won praise with fashion insiders and some customers; sales rose 1 percent in 2023. O'Donnell departed in January 2024, and the CEO role sat empty for nine months. Last year, sales dipped, again by 1 percent, to $198 million, according to a person with direct knowledge of the matter. For Alfred Chang, it was just the challenge he'd been waiting for. Chang was co-chief executive at PacSun when the surf-inspired brand, which filed for bankruptcy less than a decade ago, experienced an unexpected resurgence with Gen-Z shoppers. After that, he was at the helm of Fear of God. ADVERTISEMENT 'What Everlane represented in this opportunity of needing leadership talent to come in and build the next chapter of growth, and getting Everlane's strength back again, was an opportunity that I just felt I was built for,' Chang told The Business of Fashion. By October 2024, Chang was in San Francisco at Everlane's headquarters, ready to steer the ship. His immediate assignment is to return to growth – any growth. The brand aims to hit $200 million in sales this year, according to a person with direct knowledge of the matter. Even that will be a major undertaking: Chang has to convince consumers to fall back in love with Everlane while staving off competitors like Quince, another online basics label that despite being founded seven years after Everlane, does more than double its annual revenue. Chang wants to cross $260 million in annual sales by 2027, said a person with direct knowledge of the matter. And Everlane's backers believe in the company's future: LVMH-backed private equity firm L Catterton, which first invested in Everlane in 2020 according to PitchBook, poured in an additional $25 million last October, making it a majority shareholder, the person said. Everlane declined to comment on the company's recent funding and financial performance. L Catterton also declined to comment. To reach that goal, Chang is plotting a big overhaul: he's already hired a new designer and merchandiser and launched the company's first brand campaign in May (previously, marketing mostly highlighted low prices and was designed to get people to click through to the brand's website). Next, Everlane is debuting a campaign for its fall collection with a recognisable face it won't yet reveal, its first time featuring a known persona in one of its ads. Also, a new logo is on the way, and the brand is exploring wholesale. 'This year is a year where we have to lay some of the groundwork. We have to have a year of corrections,' Chang said. 'L Catterton ultimately has an incredible reputation of identifying great brands and setting them up for growth.' A Turnaround Master When Everlane first launched in 2011, its disruptive proposition of 'radical transparency,' — providing details on how and where each product was made to explain its price — enticed Millennial shoppers. But after facing competition and internal upheaval in 2020, the brand brought in O'Donnell, who had previously led Uggs' revival, (Preysman remained involved in day-to-day operations). Designer Mathilde Mader joined in 2022 to refine Everlane's product assortment and move from frequent drops to fewer, more elegant collections. While Everlane was evolving, Chang was at PacSun leading its turnaround by collaborating with high-profile Gen-Zs like Kylie Jenner and Emma Chamberlain. He then moved on to Fear of God in 2023, where he took Jerry Lorenzo's sharp vision of quality tailoring targeted at a young, streetwear-driven consumer and 'set up the operational pieces to be able to start to drive significant growth,' Chang said. Alfred Chang was previously co-chief executive at PacSun and chief executive at Fear of God before taking the reins at Everlane. (Everlane) In joining Everlane, Chang saw an opportunity to do the same thing. One of his first moves was to improve the brand's online store, including enhancing its site navigation. Chang is also looking to enter Everlane into multi-brand retailers in the second half of 2026, including potentially selling core items like its chinos and box-cut tees on Amazon — a strategy many of its DTC peers have implemented. It's one of his bigger swings as he gets full control of the brand: Preysman has taken a step back to focus on his new venture, Magna, a magnesium-based beverage brand, a person with knowledge of the matter said. ADVERTISEMENT 'I was clear with the board when I came into this job that one of the first priorities was to go through extensive brand positioning and vision work with the leadership team,' Chang said. 'Ultimately, my strong belief is that this vision, this positioning and strategy, needs to have full alignment and needs to be ours.' Refining the Vision Everlane's customer base is currently split between price and environmentally-conscious Gen-Zers and fashion-minded Millennials looking for less expensive alternatives to minimalist labels like The Row and Toteme. To address its target audience while widening its appeal, Everlane debuted its first brand campaign in May called 'Clean Luxury. Better for You,' featuring aloof models standing near a hill, meant to represent Everlane's sustainability promises and its efforts to be known as a fashion-first label. While that storytelling didn't emphasise the clothes themselves, Chang understands that for the message to land, it has to be reflected in the designs. The current assortment is filled with Mader's — who left Everlane for Calvin Klein last September — concept of a modern, fashionable wardrobe: barrel leg jeans, Mary Jane flats and funnel neck tanks. But after pooling customer feedback from surveys and input from Everlane sales associates, Chang found that consumers felt the brand's organic materials didn't retain their luxurious feel over time. So this year, Chang hired Gap and alum Cynthia Ng — who he felt knew how to make desirable clothes at a reasonable price — as head of design. He also brought in Bobby Goodwin, a former PacSun colleague, as senior vice president of merchandising. For the fall collection, the team is introducing new fabrications like silks and viscose sourced from sustainable suppliers, Chang said. Chang also sees the product as an avenue for brand awareness. Everlane recently enlisted the help of a creative agency to create a new brand logo that it will slowly and subtly start to incorporate on its clothes later this year, he said. It's a move toward making Everlane a legacy brand with recognisable insignia that its consumers want to telegraph. 'As we continue to create more relevance and awareness within the brand … one of the things that people do love to do is to also get a bit of that brand recognition saying 'I have an Everlane piece,'' Chang said. 'There's a comfort level; a trust level within that product.' A Continued Transformation Everlane's attempts to reshape its image isn't yet resonating with consumers: its engagement across various social media platforms dropped 10 percent year over year from June 2024 to May 2025, according to influencer marketing platform CreatorIQ. But Chang says the 'Clean Luxury' campaign in May has led to a 10 percent increase in Everlane's average order value, most of which is coming from new shoppers. Still, he acknowledges that there's more work to be done to broaden Everlane's reach. This year, the brand is building out its influencer ambassador program and hired a new staffer to take the lead on developing longer-standing partnerships with talent, including the yet-to-be-named face of its forthcoming fall campaign. ADVERTISEMENT 'It's important that we have more authentic storytelling and representation,' Chang said. Everlane is also addressing its largest threat: Quince. The six-year-old startup, which sells everything from Bottega Veneta-inspired woven leather bags to Away-esque luggage, takes an approach similar to the one Everlane did in its early days, running ads that break down its pricing, even comparing itself to Everlane. Instead of lowering prices or going on an ad-buying spree, Everlane is focusing on emphasising its materials and sustainability in its messaging, highlighting that nearly all of its cotton-based products are organic; and since 2019, the brand reduced its carbon emissions to 52 percent in 2024 against an initial goal of 55 percent by 2030. 'It is our responsibility to have a stronger, more compelling brand narrative beyond price,' Chang said. 'That's how we're going to compete with them.' Consumers may be increasingly wary of green marketing, but when a company is repositioning itself, it shouldn't abandon its foundation as consumers today latch onto brands with consistent messages, said Nora Kleinewillinghoefer, the head of fashion and luxury North America at Kearney. 'It's about growth of the brand; it's about expansion of the brand. It's not about diluting what the past is,' Kleinewillinghoefer said. 'There's a celebration of history without preventing yourself from moving forward.' As Everlane continues to assert itself as a fashion authority with sustainability at its core, Chang is simultaneously bringing the company's growth goals down to earth. For starters, the brand is no longer chasing $1 billion in annual sales — a feat that most prominent DTC brands from the 2010s have yet to achieve. 'We want to build a stronger Everlane; a brand that has purpose, relevance, and strength … It could be a very valuable brand at $200 million; it could be a very valuable brand at $500 million,' Chang said. 'The outcome of the revenue will be what it is.'
Business of Fashion
24-06-2025
- Business
- Business of Fashion
How Kiko Milano Built Pricing Power
Across the income spectrum, one thing unites all shoppers: everybody likes to feel that they got value for money. While macroeconomic shifts will increase wealth in concentrated pockets, the next five years could also see wealth decline in lower- and middle-income households. Wealthy customers will have more brands vying for their spend, while lower-income customers will want to make every penny count. Perceptions of value will become deciding factors for shoppers. Kiko Milano, founded in 1997 in Italy, has long walked the tightrope between high quality cosmetics and accessible pricing. Since 2022, it has begun an elevation strategy, reducing promotions, changing its distribution strategy and introducing more premium products; as well as its $4.50 lip liners, it also offers a $28 serum-primer hybrid and a $32 eyeshadow palette. The brand can now also be found in premium department stores like El Corte Inglés in Spain and Galeries Lafayette in France. So far, the strategy is working: sales grew 14 percent in 2024 to €900 million (approximately $1 billion), while LVMH-backed investment firm L Catterton took a majority stake in the business the same year. Chief executive Simone Dominici says further premiumisation can help grow the brand's global appeal — and its margins — but that maintaining accessible pricing will enable Kiko Milano to add new customers across the wealth spectrum. Using hero franchises, social listening and strategic relationship-building with suppliers and customers is key to winning over discerning shoppers in the brand's more than 1,250 stores. Through collaborations with tastemakers like the model Sara Sampaio and the hairstylist Rossano Ferretti, the brand is working hard to establish a premium presence, whilst also fending off competition from other masstige players. The Business of Beauty: Is your core customer shopping for affordable beauty only? Simone Dominici: They mix and match. We define ourselves as an entry prestige brand now. In our stores, we see Prada bags and Louis Vuitton bags. The customer might have a lipstick from Chanel that they match with their eyeshadow from Kiko; the common denominator is the quality. Because we want to be entry prestige, it doesn't mean we need to have a lower prestige level than a true prestige brand. We need to have the same quality but more democratic price, otherwise, the equation doesn't work. ADVERTISEMENT The Business of Beauty: People sometimes say that affordable beauty is not as good quality as prestige. How do you challenge that? SD: When I started here three years ago, low price was confused for low quality, and 80 percent of our sales were done on promotion. When you discount your product too much [it loses appeal], and that is what some drugstores and some chains do; that's why I don't want to have my product in drugstores. Instead, we're entering department stores and speciality retailers, among the more important ones. We replaced promotions with services, and invested heavily in them. We offer a 10-minute makeover in store for free, and we don't force you to buy. It's just for pleasure and to inspire your confidence. It's about exploring, experimenting, touching and playing with our products. When you convince people about the quality, then they become a loyal customer. The Business of Beauty: The beauty space is being overtaken by dupe brands. How do you make a strong identity for yourself when other brands in your price bracket are doing dupes? SD: There was a season in which consumers were loving dupes, but we never had a temptation to go for it. We're an innovative brand, and one of the reasons why we are strong in innovation is because we are sitting very close to the producers that produce half of the global cosmetics used in the world. So our marketing and R&D departments engage with these companies every day, and so we differentiate our innovation with our concept, packaging, design and quality, and the experience in our stores is luxurious and very unique. The environment where you buy the products also creates part of the positioning. The Business of Beauty: What role do hero products play in your overall strategy? SD: When we shifted from being a mass brand to becoming more premium, we immediately reviewed our portfolio. To become an iconic brand, my belief was we need to have strong franchises. The brand needed an iconic product that people chase, search for and have confidence in. Then we created a few iconic franchises, one of which is the 3D Hydra lip gloss. On one hand, the goal is to recruit new customers, but also, it's to create inspiration to create different looks. Now we have more than 35 shades, so you can create different looks, combine with a lip liner, and so on. You enter through a product, and then you explore the assortment and you fall in love with the opportunities to create looks. That ends up having a higher average ticket because you have more pieces per unit. Through the iconic franchise, you expand your community footprint, then store exploration, and then you expand the portfolio. To become an iconic brand, my belief was we need to have strong franchises. The brand needed an iconic product that people chase, search for and have confidence in. The Business of Beauty: What does the rest of your premiumisation strategy look like? SD: Other than creating franchises and switching from promotions to services, it's also elevating the pricing. This is mainly thanks to product mix, so we've introduced new products with a higher value perception. We did this partly through collaborations, which we've done with Disney, Bridgerton, and then celebrities like Sara Sampaio and Emma Roberts. We had our haircare range designed with [hairstylist] Rossano Ferretti. We don't want to become a multi-brand retailer — these are all still Kiko-branded products — but this allows us to increase the average price. Another way to increase average price is by growing in categories with a higher average price, like skincare. ADVERTISEMENT The Business of Beauty: With those collaborations that retail for a little bit more, presumably that's beneficial for your margins as well. SD: Correct. That's why our gross margin has expanded and then we create room to open more stores, and room to increase our marketing investment, especially on digital and social media influencers. The Business of Beauty: In what other ways have you been able to make incremental savings and boost your margins? SD: We work very closely with our manufacturers, and we have an understanding of the formulaic products that maximise efficiency. Then when we launch a collection, we buy two million pieces. Our operational team, our supply chain, is capable of negotiating better pricing with our suppliers. It's like if you are in tech and you live in Silicon Valley, your network is helping you to be more innovative. The Business of Beauty: A lot of beauty brands use social media virality to get people excited. How do you generate that with your customers? SD: Of course, it's always good to go viral and have good user-generated content, but we couple [social media] with more traditional media like TV in countries where it's relevant to build penetration. We have 17.5 million people within our social media network. If you listen to them, you start learning a lot. Plus, we have over 7,500 beauty advisors in our stores. These people are connected with the customers every day, and most of them are real beauty lovers. They can give you a lot of insight into a community. We have an app that all of us share called Kiko Community. The Business of Beauty: There's a lot of pressure to continually deliver newness; tell me how you handle that. SD: There's social listening, and talking to suppliers, talking to customers through our loyalty program … it's an ecosystem. Our marketing team works with suppliers to download these ideas into concrete projects that can last between 12 and 18 months. It's a medium- to long-term innovation process. You start today thinking of the concept. What you think of today will probably be ready by the end of 2026 … the ingredients, the formulation, the regulation, the compatibility with the packaging, it takes time. True innovation doesn't come in a month, unfortunately. ADVERTISEMENT The Business of Beauty: But we see that customers are quite fickle, especially in cosmetics. How do you create repeat customers? SD: Even when we are selling through department stores or marketplaces like Amazon, the majority of our sales are DTC so we have a direct relationship with our customers. We have almost 7 million active loyal customers, meaning they buy with us more than once in a year. On average, they buy with us 1.9 times a year. So in the last 12 months, these 7 million have bought twice. Our communication to them is more and more newsletter you receive is not the same one that another one receives; it's based on your lifestyle and your past behaviours. The more you are personalising the approach, the more the customers feel heard and the more they come back. We also have a unified commerce platform through which our inventory, our customer database and our transaction data are shared. The Business of Beauty: In 2025, we see a cooling in beauty market growth. How are you feeling about the near term? SD: In the last three years, we doubled the percent, which is three times the market average. But still there is a lot of room for us because our market share is neglectable in some very large markets, like the US. This is where L Catterton is helping. It won't be easy, but there is room for high-quality products in this entry prestige market at a democratic price. We signed a deal with Reliance, one of the largest operators in India, at the beginning of the year, and we're expanding our presence in the market. We opened in Indonesia in January, which is home to 200 million people. We opened in Pakistan in 2024, and we're in Brazil, Chile and just opened in Mexico. We're entering Kenya, Ghana, Nigeria. In 2025, there will be 2 billion customers that we have never reached before. Our positioning is also well placed. On one side, we inspire the low middle class when they elevate their standard of living, and they want to have more refined products. At the same time, there will be some macroeconomic difficulties. When you slow down the middle class, they are starting to look at value with much more attention. The Business of Beauty: What do you think the beauty consumer of tomorrow wants? SD: I think they are more equipped than previous generations to spot inauthenticity. I think dupes will become less popular and there will be more demand for authenticity. Value will be an important element, because the economic conditions might not be so relaxed in the future. This interview has been edited and condensed. This article first appeared in The State of Fashion: Beauty Volume 2, an in-depth report on the global beauty industry, co-published by BoF and McKinsey & Company.
New York Post
11-06-2025
- Entertainment
- New York Post
Gurney's Montauk Seawater Spa & Resort unveils luxe revamps, partnerships for 2025
There's summer in the Hamptons — and then there's summer at Gurney's Montauk Seawater Spa & Resort, where sun-drenched sophistication meets peak scene-stealing glam. Set on a dramatic bluff with panoramic Atlantic views, this East End icon doesn't just offer luxury, it guarantees a spot at the most coveted beach party around. And this year, the Hamptons property is seriously upping its game, courtesy of a splashy culinary revamp, a socialite's spa takeover, a designer beach pop-up and some very photogenic Cadillacs that provide the ultimate prop for an enviable Father's Day TikTok vid. 6 Gurney's Montauk is perched on a bluff overlooking the Atlantic. Courtesy Gurney's Montauk Resort & Seawater Spa Advertisement Start by checking into one of the 158 coastal-chic guest rooms, all raw woods and earth tones, then make haste to Gurney's private beach club, which this summer is getting a total Dolce & Gabbana makeover. Picture a riot of iconic Majolica prints and bold Sicilian-styled hues enveloping loungers, cabanas and umbrellas, all complementing the whites, blues and creams of the crashing waves, the sand and the endless skies. Should you forget to pack your jet-setter's caftan or canvas tote, worry not: Gurney's is also welcoming a pop-up D&G boutique with all the summery essentials a Beach Bunny requires. 6 The new Gigi's Montauk will serve culinary delights in a stunning dining room and patio. Thomas John Agoglia Then sign up for the resort's Signature Summer Fitness Series, which includes beachside workouts every Saturday and Sunday morning for guests and in-the-know locals. (Those abs aren't going to crunch themselves!) Treat yourself to a full post-sweat restoration at Seawater Spa, the recently renovated 30,000-square-foot wellness destination, featuring a hydrotherapy circuit, hot and cold water therapies and a seawater-fed indoor pool. This summer, Gurney's will tap Irene Forte Skincare for its facial treatments, an LVMH-backed organic line founded by the daughter of hotel mogul Sir Rocco Forte. Her customizable 90-minute facial incorporates Forte's science-forward skin care and includes a deep cleanse, a mask and a lymphatic massage. It's basically a vacation for your face. Advertisement 6 The resort boasts an indoor saltwater pool and freshly reimagined spa. Courtesy Gurney's Montauk Resort & Seawater Spa Once you're toned and lifted, follow the beats of Sound Waves, Gurney's summer DJ series, to the deck and firepit. Sets by world-class talent start during sunbaked afternoons and stretch into beachy twilights, a barefoot celebration of seasonal feels. All that dancing have you feeling peckish? Sashay over to Gigi's Montauk, the culinary crown jewel opening to the public on June 16 — just in time for Father's Day. 6 There's an exclusive Cadillac Experience — chauffeuring guests in a luxe new Escalade (pictured) or Lyriq. Courtesy of Cadillac Advertisement The space is a stunner: A 4,000-square-foot dining room lined with blond wood, creamy stone and killer ocean views, plus a 2,500-square-foot patio where every table delivers a front-row seat to the sunset. And did we mention the food? Chef Justin Lee, a French Laundry alum, helms the kitchen along with Gurney's beloved Chef Mbaba 'Baba' Danso, whose grandmother hails from Gambia. Together they're whipping up elevated coastal American cuisine with serious global bona fides. Order the 1½ lb. Angry Lobster, a smoky-spicy showstopper with chili, cayenne and Aleppo pepper on grilled Tuscan bread, and the Giant Shrimp Scampi, baked and laced with lemongrass-infused mayo. Even the sushi is Instagram-worthy: The Gigi Roll layers spicy hamachi with tobiko and crispy shallots and makes all the influencers go 'Ahhhh.' 6 Gurney's is host to 158 chic and sunny guest rooms near the sea. Courtesy Gurney's Montauk Resort & Seawater Spa Gurney's also makes it easy to celebrate the dads in our lives this summer with its exclusive Cadillac Experience. While you (or Pops) won't be putting the pedal to the metal yourself, the program invites guests to be chauffeured around town in a sleek new Lyriq or Escalade. Not quite ready to leave campus? Simply strike a pose next to the hot wheels and serve your public that 'Casually arriving at my Hamptons house in Daddy's Caddy' vibe. Advertisement 6 Dolce & Gabbana handled Gurney's private beach club makeover. Courtesy Gurney's Montauk Resort & Seawater Spa Gurney's has never been one to rest on its laurels, even after a century as a bolt-hole for the guests of stylish Hamptons summer people. This season, whether you're a Montauk regular or splurging on a trip Out East to celebrate Father's Day, it's lining up as the destination of the season. Rooms from $1,045 at Gurneys Resorts
Mint
26-05-2025
- Business
- Mint
Nestle SA picks up minority stake in Indian pet food company Drools
New Delhi: Swiss food giant Nestle SA, the parent company of Nestle India, has made a minority investment in the Indian pet food company Drools Pet Food Private Limited. The financial details of this investment, Nestle SA's first in India, were not disclosed. Nestle SA owns popular brands such as Kit Kat and Milo. Drools will remain operationally independent after the investment, according to a statement released on Monday. The investment follows a $60-million fundraise by the company in 2023 from LVMH-backed private-equity firm L Catterton. The firm's investment in Drools amounted to 10% of the company's valuation at the time, making it one of the largest investments in the Indian pet care industry. Founded in 2010 by Fahim Sultan, Drools sells high-protein and prescription diets for pets. Its products are distributed across more than 40,000 retail outlets and exported to 22 countries. The company operates six manufacturing units and has a large warehousing footprint. It is also a key player in India's cat food market and a leading seller on e-commerce platforms including Amazon. Nestle has a large pet food business. In 2024 its pet care business reported 18.9 billion Swiss francs in sales, accounting for 20.7% of the company's total sales that year. It sells pet food for dogs and cats under brands such as Purina and Felix, according to the company's 2024 annual report. Purina Petcare was launched in India in 2017, albeit as a separate entity. In 2022 Nestle India acquired the pet food business Purina Petcare India for an estimated ₹ 125.3 crore to operate and scale the brand in India. Pet ownership in India surged during the pandemic as people were confined to their homes. The country now has an estimated 100 million pets, including 30 million in households. The pet food market, currently valued at $551 million, is projected to reach $1.8 billion in the next seven to eight years. The broader pet care sector has seen a rise in homegrown brands selling food, toys and accessories. Last August consumer products company Godrej Consumer Products Ltd (GCPL) announced plans to enter the pet food market in FY26 with the launch of its subsidiary Godrej Pet Care. GCPL will invest ₹ 500 crore in Godrej Pet Care over the next five years, partnering with Godrej Agrovet Ltd (GAVL) for manufacturing and R&D, the company said at the time. Other major pet food sellers include Mars Pet Nutrition, the maker of Pedigree and Royal Canin, and Nestle India. Anjana Sasidharan, partner and head of India at L Catterton, said, 'Drools has achieved significant growth since we invested in the company two years ago, through high-quality in-market agility and execution, and a range of operational initiatives we have been working on with its management team to create value. We are thrilled that Nestle, which has such a renowned position in the global pet care and consumer brands space, joins as a minority partner.' Fahim Sultan, founder of Drools Pet Food, said, 'This is a testament to the love and trust of millions of pet parents and to our unwavering commitment to quality… Backed by a strong focus on science-based nutrition, Drools continues to drive innovation and build meaningful engagement with the evolving demographic of Indian pet parents, positioning itself at the forefront of the country's pet care industry.'
Mint
05-05-2025
- Business
- Mint
These startups are drawing investor interest amid a growing tribe of pet parents
Mumbai: Urban India's pet parents are driving a wave of investor interest in the pet care space. A clutch of startups such as Heads Up For Tails, Supertails, and Vetic are now in fundraising talks amid rising demand for premium products and services. While Supertails looks to raise about ₹ 200 crore by the end of this year, Heads Up For Tails is eyeing an investment from domestic investment firm 360 One Asset over the next few months, according to multiple people familiar with the matter. Vetic, a tech-enabled chain of pet clinics, is looking to raise a sizable round and has begun discussions with investors, they said, adding that some of these transactions may see existing investors part exit their stake. Supertails and Vetic did not immediately respond to Mint's requests for a comment. While 360 One declined to comment, Heads Up For Tails' founder Rashi Narang denied the development. Investor interest in India's pet care industry surged in the years following the pandemic, driven by a wave of new pet adoptions and rising disposable incomes. In 2023, pet care startups raised a record $66.3 million across 16 rounds, led by one major transaction—Drool's $60 million fundraise. While 2023 saw a funding spike driven by Drool's large deal, overall funding activity in 2024 was more broad-based, with fundraising at $17.9 million spanning 13 rounds, as per Tracxn. 'Pet ownership in India is estimated to be less than 10% of overall households, but growing at a rapid pace with rising incomes, especially among urban consumers. In developed economies, pet ownership can exceed three in four households, and that headroom for growth is reflected among the upper income segments in India," said Devangshu Dutta, chief executive of Third Eyesight, a management consulting firm. He added that urban couples and singles in many cases are even opting to become 'pet parents" instead of having children. Platforms such as Supertails, Drools and Heads Up For Tails have been the big beneficiaries of this shift. Drools raised $60 million from LVMH-backed private equity firm L Catterton in 2023, while Supertails raised $15 million led by RPSG Capital Ventures in February last year. Earlier this year, Mint reported that Heads Up For Tails has begun fresh talks to raise $40 million from new and existing investors such as Peak XV and Verlinvest, about four years after its last institutional round. While the exact size of the round is still being decided, the company intends to use the proceeds towards its expansion plans. Similarly, Supertails, which is in talks to acquire Blue 7 Vets, a multispecialty veterinary clinic as part of its strategy to expand its offline presence, will also raise capital to fund the acquisition of new customers, investments in technology, and the expansion of healthcare services, including Supertails Pharmacy and build an omnichannel experience for consumers. The company raised about $15 million in its series B funding round last year led by RPSG Capital Ventures and existing investors Fireside Ventures, Saama Capital, DSG Consumer Partners and Sauce VC. Meanwhile, Vetic, which raised $3.7 million in a seed funding round led by angel investor Lachy Groom in 2022, aims to further bolster its geographical expansion of its clinic network across Delhi NCR and Bangalore regions. Vetic's round also saw participation from other angel investors including Utsav Somani, partner, AngelList India; Nitin Saluja, founder of Chaayos; Ritesh Agarwal, Abhinav Sinha, and Maninder Gulati of Oyo; Shiva Singh Sangwan, founder of 1947 Rise; Revant Bhate, CEO of Mosaic Wellness. Also Read: Four legged influencers are becoming pet care industry's marketing mavericks 'Consumers are not only spending more money or buying products and services but also becoming conscious of quality and the differentiation between brands on offer, much as they would with products that they buy for themselves and their family members," Third Eyesight's Dutta said. 'The spend on pet food, pet products and care services is growing… These trends have resulted in a growing number of companies entering the market and covering different segments of products and services," Dutta said. Currently valued at $3.5 billion, India's pet care industry is expected to grow significantly in the coming years, according to a report by Redseer Strategy Consultants in October 2024. As more pet parents focus on their pets' well-being, the demand for premium, specialized offerings will continue to rise, the report said, adding that the market's growth trajectory presents opportunities for both established players and new entrants to tap into this dynamic sector.
