Paws India
Initial Ask – Rs. 50 lacs for 4% equity at a valuation of Rs. 12.5 Cr.
About the Company
It is an ecommerce pet product development company, which uses innovation, advanced healthcare and product development to build a community of pet lovers. They don’t only have their own business, they even work for the flourishment of other small pet startups, which can’t afford to take this up on themselves. Currently, having around 250-350 products on their website, their own business makes up the 90% of this company, whereas the other 10% business came from other companies.
Talking about their products, they are the first to bring out a smart toy for pets, which is operated through bluetooth, and is meant for urban pet parents. This is their 2nd best selling product, which is manufactured by some other startup. Their own best selling products are hemp oil and self play dog toy. This is also one of a kind product in the whole world.
Past performance of the Company
Out of the 90% which they make from their own business, 25% comes from healthcare, and the other 75% comes from accessories, tech toys and food. Sales figure for the month of October 2021 was Rs. 20 lacs. Till November 2021, they were standing at a revenue of Rs. 1.2 Cr, which was wholly made in the financial year 2021-21. For this year, they project a revenue of Rs. 3 Cr.
Industry Overview
India is a country with 28-29 million pets and accounts for a market of Rs. 3500 Cr. in this sector. It is said that every 4th or 5th home has pets nowadays. The petcare products have seen the largest growth of 30-35% in the FMCG sector. Some of the reasons behind this push are growing urbanisation and the number of existing nuclear families, for whom pets have gone from being a ‘security guard’ to a family member. As people got to spend more time with their pets in the lockdowns, there has been an increase in the pet care products and trends. This has acted positively for the likes of this company.
However, pet food still remains the focus and MARS Petcare, thus has the greatest market share in this space. This company is focused towards selling not only food products, but their competency area seems to be the toys that they are dealing in. Seeing Heads up for Tails as their direct competitor, the company struggles to make a notable presence in the industry.
Offers made, and the one accepted:
Anupam Mittal was the only one to offer the deal, where he would invest Rs. 50 lacs for 15% equity of the company, where he promised to fund the PO (Purchase Offers) of the company in the future. Without any counter offers, the deal was closed at this offer.