Heads Up For Tails taps existing investors
1 min read . Updated: 03 Jan 2023, 10:09 PM IST
PremiumThe company is raising nearly $10 million-$15 million ( ₹83 crore- ₹124 crore) from two of its existing investors.
NEW DELHI/MUMBAI : Precious Pet Services Pvt. Ltd, which runs pet products and care portal Heads Up For Tails, is raising an internal round of funding after a proposed deal to secure a large cheque from an alternative investment firm fell through, two people aware of the talks said.
The company is raising nearly $10 million-$15 million ( ₹83 crore- ₹124 crore) from two of its existing investors—Sequoia Capital and Belgian private investment firm Verlinvest SA, the people cited above said on the condition of anonymity.
The startup was recently engaged in an advanced stage of talks with private equity firm KKR to raise about $50 million. However, the deal failed due to mismatch in valuation expectations.
“The company was seeking around 6-7x of revenue in terms of valuation, which was difficult in these market conditions," the people cited abo ve said, adding that KKR was likely to commit $25 million and the rest was to be contributed by existing investors.
In August last year, news portal Moneycontrol reported that the company was in talks to raise $50-70 million in a round led by KKR.While KKR declined to comment citing “speculation", email queries sent to HUFT and its investors remain unanswered .Founded by Rashi Sanon in 2008, Heads Up for Tails has over 100 products in the category. Sequoia declined to comment.
The company offers products ranging from human-grade, preservative-free treats to novelty items like orthopaedic beds and organic supplements. The startup has an omni-channel presence. The brand now has over 70 retail outlets and 30 spas for pets and also sells products through its own site.
The startup had in 2021 had raised $37 million in its Series A funding round led by Verlinvest and Sequoia Capital India.
The company’s growth in terms of revenues remained almost remained flat during fiscal year 2021-22. HUFT had posted net sales of ₹66.4 crore during FY22 as against ₹66.2 crore a year before, as per VCCEdge.
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The petcare space has been attracting venture capital funding traditionally but even strategic investors have jumped into bandwagon in recent years. In July 2022, fast moving consumer goods (FMCG) company Emami Ltd bought a 30% stake in petcare brand, Fur Ball Story.
Mankind Pharma, in early last year, also forayed into the category by leading a ₹50 crore round in Bengaluru-based natural pet treat company Khanal Foods, which runs brands like Dogsee Chew and Himalyan Natives. The firm also counts early stage focussed venture capital fund Sixth Sense Ventures among its investors.
On the other hand, consumer-focused venture capital firm Fireside Ventures also struck its debut transaction in pet care space with a $10 million investment in startup Supertails.com in November.
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