India's petcare industry booms with startups, investors, and new mindsets

About a week ago, Bengaluru-based pet food brand Drools made headlines by becoming a unicorn — a startup valued at over $1 billion — following an investment from Nestlé SA. It was the Swiss food and beverage giant’s first investment in India, and at 10 per cent, also one of the largest investments the country’s petcare industry has seen.

  For those within the sector, this was hardly surprising.

  “India’s pet economy is undergoing a fundamental shift — from an unstructured sector to a high-growth industry,” says Salil Murthy, managing director of Mars Petcare India, the company behind popular pet food brands such as Pedigree and Whiskas. “This transformation is being primarily driven by the pet food industry, owing to multiple factors.” Culturally, pets are now seen as integral members of the family, not just companions, he adds. 

  Take 30-year-old Sakshi Ahlawat, a devoted ‘pet parent’ whose plans revolve around her three dogs: Tiger (14), Shadow (4), and  Luca (3). Travel or work requires her to arrange pet-friendly hotels or reliable boarding homes — both more expensive than standard options. On occasion, she spends up to ₹12,000 per pet to ensure they get the best care. 

  “The expenses vary depending on their health and vaccination needs,” she says. “One of my dogs is older and gets sick quite often, so his expenses are slightly higher. Boarding costs around ₹1,000 per night, including food and stay.” Some of her dogs were also sent for training, which cost around ₹40,000 for three months.

  Surya Sen, who has three cats, spends nearly ₹13,000 each month just on food. “Wet food costs ₹65 per packet. I use one per cat per day — that’s ₹195 daily, or ₹5,850 monthly, or more if I don’t get good discounts. Litter costs around ₹400 a week, or ₹1,600 monthly. Dry food is another ₹5,000 for a 10 kg bag,” he explains. 

It is pet parents like Ahlawat and Sen who are driving the rise of India’s petcare economy. A Redseer report from October last year valued the sector at $3.5 billion, with projections of $7–7.5 billion by FY28 — underlining the immense potential of this rapidly expanding market. 

Murthy adds: “Increasing adoption rates, easier access to pet food through e-commerce, and growing awareness around pet wellbeing are all deepening the category.” He says what they are witnessing isn’t just a trend — it’s a long-term behavioural and cultural shift that will continue to expand the industry in scale and sophistication. 

Off the leash 

Unsurprisingly, a growing number of companies are looking to capitalise on this momentum.  

Besides Nestlé SA’s minority stake in Drools, digital petcare platform Supertails is in talks to raise up to $25 million in fresh funding. Heads Up For Tails, a petcare retail chain backed by Peak XV Partners, is also in discussions for a new round of funding. Vetic, a Gurugram-based veterinary care startup, recently closed a $26 million funding round. 

This interest is a reason other industries, too, are integrating petcare into their offerings.  

Insurance companies, for instance, have responded to rising pet ownership — particularly since the pandemic — by introducing specialised products. Players like Bajaj Allianz, Future Generali, and HDFC Ergo General Insurance now offer pet insurance covering medical expenses, surgeries, and accidental deaths. 

“The decision to introduce pet insurance stemmed from multiple intersecting trends,” says Amarnath Saxena, chief technical officer – Commercial at Bajaj Allianz General Insurance. “Over the past decade, India has seen a steady increase in pet ownership, especially dogs, and a corresponding rise in veterinary and petcare costs. Yet, there were no formal financial products catering to these expenses.” 

He adds that demand from Tier II and III cities is also rising. “Pet insurance differs significantly from human health insurance,” he says. “While health insurance for humans is largely driven by parameters such as age, medical history, and pre-existing conditions, pet insurance relies on a different set of variables. These include breed-specific health predispositions, age and size of the pet, vaccination status, and even geographical factors that may influence disease exposure or risk.” 

The Redseer report highlights the dramatic growth of pet ownership in India. According to it, the number of pets has risen from 26 million in FY19 to 32 million in FY24. Commerce ministry data shows that imports of mammals — primarily cats and dogs — have surged over 50 per cent since the pandemic. Petcare spending has more than doubled, from $1.6 billion in FY19 to $3.6 billion in FY24, the Redseer report finds. And according to Tracxn data, petcare startups have attracted over $180 million in investment between 2019 and 2024. 

 

“Over the last decade, pet ownership in India has evolved into pet parenting. Pets are now treated as emotional anchors and family members,” says Murthy. “Pet parents actively research ingredients, seek veterinary advice, and look for quality, science-backed products” — not just in metros but also in smaller cities, “reflecting nationwide acceptance of pet parenting as a modern family norm”. 

Haute and high-flying 

This evolution has opened up new niche businesses — including premium pet fashion.  

BoofbyBella, a luxury pet clothing startup founded by sisters Chetna and Chaitalee Abrol, was inspired by their pup Bella. “While working with designers earlier in our career, we noticed how little was being done in pet fashion. We decided to address that gap,” says Chetna. The sisters founded the pet fashion company three years ago. “We provide clothing for pets during weddings. This market is widespread globally but has barely any presence in India.” 

Interestingly, customers are willing to splurge. “Our products range from ₹2,000 to ₹10,000,” she says. “Despite the price points, we’ve attracted clients not just from India but across the globe.” 

For businesses such as these, the sky’s the limit. Speaking of the sky, several carriers, including Air India and Akasa Air, offer pet-friendly services on domestic routes. Akasa Air allows pets under 10 kg to travel in the cabin, while Air India has its own weight and size guidelines for pets in the cabin and cargo. 

“There’s been a real shift in how we perceive animals. More people want to travel with their pets,” says an Akasa Air spokesperson. “Our ‘Pets on Akasa’ initiative is part of a broader industry trend where pet-friendly travel is becoming an essential customer experience.”  

He adds that since the launch of the initiative in November 2022, “we’ve flown over 6,800 pets — a testament to the growing demand for pet-inclusive travel among Indian flyers”. 

Despite such rapid growth, India’s petcare industry remains relatively young. But with landmark deals, like Nestle’s investment in Drools, and expanding interest from diverse sectors, the industry looks poised for its next big leap.