Tuesday, June 25, 2024
HomeStart UpPetcare startup Supertails raises $15 million in funding 

Petcare startup Supertails raises $15 million in funding 

Bengaluru-based startup Supertails, focusing on pet care, secured $15 million (about Rs 125 crore) in equity funding led by RPSG Capital Ventures. Existing investors Fireside Ventures, Saama Capital, DSG, and Sauce VC also joined the round.

The funds will fuel offline expansion, product scaling, customer acquisition, and growth of healthcare service, Supertails Pharmacy. Trial stores are set to launch in metropolitan and tier-I cities like Bengaluru, Mysore, and Ahmedabad. Currently lacking physical retail stores, the company aims to enhance its presence.

“We will have to think of multiple stores in multiple localities. In the next two quarters, the idea is to have five to seven stores. And once we are able to crack that model, we’ll have at least 25 stores in the next two years,” cofounder Varun Sadana said. 

Established in 2021 by Sadana, Aman Tekriwal, and Vineet Khanna, Supertails provides an array of pet supplies like toys, accessories, and pet food. Additionally, it offers online veterinary consultations, pet training services, and pet pharmacy services throughout India, covering over 18,000 pin codes.

Supertails primarily operates through its website, with a revenue distribution of 70% from food and food-related products. The remaining 30% comprises non-food items, including the healthcare business, contributing 10% to its revenue.

Supertails aims to achieve a revenue of Rs 100 crore by the end of FY24. In FY23, as per filings with the Registrar of Companies (RoC), the company reported operating revenue of Rs 33 crore and a net loss of Rs 30 crore. Notably, Supertails allocated Rs 12.5 crore, more than a third of its operating revenue, for marketing expenditures during the same period.

“Products like pharmacy, creating good-quality curated non-toys and accessories is what the consumer is looking for. They obviously sell a lot, and at the same time, they bring in profitability to the company as well,” said Sadana.

Supertails, backed by angel investors including Kunal Shah from Cred and Varun Alagh, the CEO of Mamaearth, has set a goal to achieve a Rs 500 crore annualized revenue run rate (ARR) within the next two years. The company currently operates at an ARR of Rs 120 crore, according to Sadana.

“The idea is to keep building this business in India itself. We don’t intend to take it outside the country in the next two years as a strategy because we feel there is a very large market out there,” Sadana said. He said the addressable petcare market in India is worth around $5 billion. 

Commenting on the investment, Abhishek Goenka, managing partner, RPSG Capital Ventures said, “With increasing disposable income and a rising trend in pet parenthood, the pet care industry holds significant potential in the future. As we expect India’s pet economy to grow over the next decade, Supertails’ expansion aligns perfectly with the current landscape. 

Kanwaljit Singh, founder and managing partner at Fireside Ventures, added: “Catering to the ever-evolving needs of Indian pet parents, Supertails has successfully managed to build a full-stack platform offering for its consumers. We look forward to seeing them strengthening their position in the Indian pet care market and fulfilling their aim of creating a stronger pet care community.” 

Supertails’ competitor, Heads Up for Tails (HUFT), backed by Peak XV Partners, intends to enter the international market in the current year. In September of the previous year, it was reported that HUFT aims to enhance its offline presence by opening new stores in tier-II and tier-III cities. As of September, HUFT had 80 stores and plans to expand the count to 130 by the end of FY25.

Supertails secured its last funding of $10 million in November 2022, led by Fireside Ventures.

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