Swiss food and beverage multinational Nestlé SA has made a strategic entry into India’s booming pet care market by acquiring a minority stake in Bengaluru-based Drools, a direct-to-consumer (D2C) pet nutrition brand. Nestlé’s move comes at a time when the Indian pet care industry is witnessing rapid expansion, fueled by rising pet ownership and increasing awareness of pet health and wellness. This investment signifies more than just portfolio diversification; it signals Nestlé’s serious intent to capture a share of the growing $7 billion market expected by 2027-28.
Drools, now a unicorn, announced the deal while confirming that it crossed the $1 billion valuation mark. However, the company did not reveal the precise figures for either the investment or valuation. Nestlé’s decision to back Drools highlights the multinational’s interest in emerging consumer segments, especially in high-growth markets like India.
The Rise of Drools in Indian Pet Care
Founded in 2010 by Fahim Sultan, Drools has rapidly built a strong reputation in India’s pet care landscape. Starting as a niche provider of quality pet food, the company steadily expanded its product line to cover a wide spectrum of pet nutritional needs. Today, Drools offers over 650 SKUs, ranging from high-protein formulations to prescription diets and budget-friendly meals.
The brand attributes its growth to science-backed nutrition and a deep understanding of Indian pet parents’ preferences. This strategy has helped the company scale both its revenue and reach. With a team of approximately 3,400 employees, Drools has created a formidable operational backbone to support its expanding distribution network.
Independence Amidst Partnership
While Nestlé has taken a minority stake, Drools made it clear that it will continue to operate independently. The startup retains complete strategic and operational autonomy, a move that reflects founder Fahim Sultan’s intent to preserve Drools’ brand ethos and agile business model.
This approach ensures that while Drools leverages Nestlé’s global expertise in nutrition and supply chain, it remains rooted in its Indian consumer base and localized strategy. The autonomy also safeguards the company’s D2C orientation, allowing it to continue building strong customer relationships through digital and offline channels.
Global Footprint and Market Reach
Drools doesn’t just lead the domestic market; it also has a growing international presence. The company exports its products to 22 countries, including Australia, Israel, and the UAE. Its global distribution network spans over 40,000 retail outlets, establishing Drools as a significant player beyond Indian borders.
The company’s success stems from a hybrid sales model. It combines its own website with popular e-commerce platforms and brick-and-mortar retail channels. This omnichannel approach ensures high product accessibility and visibility across consumer touchpoints.
Competitive Landscape
Drools faces competition from both emerging startups and established players. Competitors such as Wiggles, Heads Up For Tails, and Benny’s Bowl have also carved niches for themselves. Each of these brands brings unique propositions—from holistic pet wellness services to gourmet pet meals—intensifying the race for market leadership.
Despite the competition, Drools maintains a first-mover advantage in terms of scale, product range, and brand recall. The company’s early investments in science-driven R&D and manufacturing infrastructure provide it with a robust foundation to withstand competitive pressures.
Pet Care Boom in India
The Indian pet care market has evolved dramatically over the last few years, particularly after the COVID-19 pandemic. More families have adopted pets, leading to a surge in demand for quality food, grooming, healthcare, and accessories. Analysts project an annual growth rate of 18-20% for the sector, setting the stage for a $7 billion market by 2027-28.
Investors have taken notice of this transformation. In February 2024, Dogsee Chew raised $8 million from investors such as Ektha.com, Shivanssh Holdings, and the Poddar Family Office. In March, Supertails initiated talks to acquire Blue 7 Vets, a multispecialty veterinary clinic, to bolster its offline services.
According to Inc42 data, Indian pet care startups attracted nearly $130 million in funding by February 2024. This influx of capital reflects growing investor confidence and the expanding opportunity landscape in the sector.
Nestlé’s Strategic Intent
Nestlé’s interest in Drools aligns with its long-term focus on pet care, a segment it already serves globally through its subsidiary, Nestlé Purina. By investing in Drools, Nestlé gains access to a rapidly growing, underserved market while supporting a local brand that has already proven its mettle.
This partnership enables Nestlé to strengthen its position in the pet nutrition space without having to build a new brand from scratch in India. Nestlé brings global nutrition science, advanced supply chain systems, and regulatory expertise—resources that Drools can tap into as it scales further.
Past Investments and Valuation Journey
Before Nestlé’s investment, Drools had already attracted significant investor interest. Nearly two years ago, U.S.-based private equity firm L Catterton invested $60 million in Drools for a 10% stake, pegging the company’s valuation at $600 million. That round marked a turning point for the startup, enabling it to accelerate its production, distribution, and marketing efforts.
Now, with its unicorn status confirmed, Drools stands as one of the few Indian pet care brands to achieve such a milestone. The timing of Nestlé’s investment suggests that the global giant sees long-term growth potential and views Drools as a key enabler of that vision.
Future Outlook
Drools plans to intensify its innovation pipeline, expand manufacturing capacity, and deepen customer engagement. The company aims to address the nuanced dietary needs of pets while responding to the evolving preferences of Indian pet owners. It also plans to enhance its product availability through newer retail partnerships and global expansions.
On the industry level, the rising urban middle class, growing nuclear families, and increasing disposable incomes will likely sustain momentum in pet adoption. Consequently, demand for premium pet care products and services will grow steadily.
Conclusion
Nestlé’s minority stake in Drools symbolizes more than a corporate investment—it represents a vote of confidence in the Indian pet care sector’s potential. Drools, already a dominant player in pet nutrition, now holds a strategic advantage backed by global know-how and local agility.
As the pet care ecosystem matures, the collaboration between Nestlé and Drools is expected to spark further innovation and scale, benefiting both businesses and consumers. With strong fundamentals, ambitious growth plans, and a rapidly expanding market, Drools stands well-positioned to lead India’s pet care revolution.