🐶 Industry News
- Recently spoke with Neil Gill, the CEO of Dogtopia, the largest provider of dog daycare in North America. Though the company was founded twenty years ago, Neil was hired in 2015 when the company had about 30 locations. Neil is a franchise expert and proved his mettle by growing the business to almost 200 locations today
Neil believes the US can handle 1,300 locations (which would put them at Banfield-size.) Once the company hits 400 daycares, its footprint will be big enough to justify national advertising. In 2020, Red Barn Equity invested in Dogtopia, valuing the company at $100 million. Neil's biggest struggle is that he can't open new locations fast enough. Demand from customers is there, but it takes months to acquire and build out each new daycare facility.
- Chewy & Petco announced earnings for the second quarter:
Chewy had quarterly sales of $2.4 billion, a 13% increase over last year. The company said customers are pulling back on discretionary items such as toys and treats, but demand for pet food remains strong.
Petco saw quarterly revenue increase 3.2% to $1.4 billion. Pet health continues to be the focus as the company closed on the buyout of its in-store vet clinics operated by Thrive Pet Healthcare. The nearly 100 clinics have been rebranded as Vetco Total Care and are now staffed by Petco employees.
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💰 Financing & Deals
- Petfolk, a North Carolina vet care startup, closed a $40 million Series A round. The company was founded in 2020 by a veterinarian and her brother (who was the co-founder of meal delivery company Freshly). The company has four locations for its tech-enabled clinics and plans to open four more in the next year.
- Kradle, a Minnesota company that makes CBD supplements for pets, has raised a $4 million Series A round. Founded in 2019, the CEO is a veteran of Pfizer and Nestle.
- Perro, UK startup that is building a smart dog collar, landed a 6-figure investment round. The founder of Vets4Pets, a UK vet clinic chain, is an investor.
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🤷♂️ Somewhat Relevant
- Petlove, the Chewy.com of Brazil, has opened its first physical store.
- SuperZoo, the large pet industry tradeshow, drew almost 10,000 attendees to Las Vegas last month.
- The number of cats has surpassed the number of dogs in China.
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😸 I'm looking for pet industry pros to feature in this newsletter
Do you run a pet startup or invest in the pet industry? I would like to hear your story. Shoot me an email and we can set up a time to chat.
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