Publicly-listed fast moving consumer goods (FMCG) company Emami Ltd, on Thursday said it has picked up a 30% stake in petcare brand, Fur Ball Story.
Harsha V Agarwal, vice chairman and managing director, Emami Ltd, said in a statement that petcare segment in India is witnessing rapid growth, without revealing the financial details of the transaction.
"With rising disposable income, a greater number of people are getting domestic pets, especially dogs. Further, with increasing awareness of the psychological and physical benefits of having a pet at home, people have started gradually identifying themselves as pet parents rather than being just pet owners," added Agarwal.
Fur Ball Story, operated by Cannis Lupus Services Pvt. Ltd, was founded in 2017 by Animesh Katiyar. The startup uses ayurvedic remedies to formulate medicines for pets.
"The products available in the market currently are full of toxic chemicals, which harm pets in the long run. Fur Ball Story is our attempt to address this problem by providing Ayurvedic solutions for common ailments to house pets, especially dogs," said Katiyar.
Emami, which sells brands such as Boroplus, Navratna, Zandu, Fair & Handsome, Kesh King, has always been open to growth through inorganic route. In March, Emami acquired prickly heat and cool talcum powder brand Dermicool from Reckitt Benckiser Healthcare (India) Private Limited for Rs 432 crore, excluding taxes and duties. In the startup space, Emami increased its exposure in Helios Lifestyle Pvt Ltd, a startup that sells grooming products under the brand The Man Company, in June last year.
Meanwhile, the petcare space has been attracting venture capital funding.
Earlier in March, retail pet chain Just Dogs raised $7 million in a funding round from Sixth Sense Ventures.
In October last year, VCCircle had reported that Sixth Sense Ventures was in talks to invest %6-7 million in dog food company Dogsee Chew.
In August last year, pet care company Heads Up For Tails (HUFT) snagged Rs 277 crore in a Series A funding round led by Verlinvest and Sequoia Capital India.