Mumbai: Direct-to-consumer fresh meat and seafood vendor Licious has invested $1 million in PowFactly Made, a Bengaluru-based fresh pet food startup.
A senior Licious executive said the company that sells customizable pet food will continue to operate as a separate entity with its production processes and supply chain.
This is Lycius’ first strategic investment. It did not share further terms.
“We are looking at businesses that are complementary and adjacent. We will look to acquire businesses in the ready-to-cook, ready-to-eat categories or offer front-end or back-end opportunities,” said Nickel Kamat. , vice-president, category told ET.
Founded in 2020 by Arpita Ganesh, PowFactly Made sells homemade and healthy pet-friendly food.
“PowFactly Made is a good strategic fit for us, given the shared vision and synergy across the value chain. The investment will give us access to a unique consumer sports and product portfolio that will complement our existing infrastructure,” said Kamat.
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The fresh pet food segment in India is at a turning point, prompting both Indian and international players to introduce their diverse product offerings to the rapidly growing user base.
According to TechSci Research, the Indian pet food market is growing at an annual rate of 18% and is expected to reach $642 million by the end of 2022. Despite the growth opportunities, the pet food sector in India has limited options and customers largely rely on pre-packaged processed food.
Founded in 2015 by Abhay Hanjura and Vivek Gupta, Licious is India’s first D2C unicorn. The company claims that it places over 20 lakh orders every month to consumers across 23 Indian cities.
In March, Licious raised $150 million from investors led by Singapore-based Amansa Capital. Kotak PE and Axis Growth Avenues AIF-I are also among the investors in that round.
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