Petlove Raises $150M to Expand Online Pet Products in Brazil

Petlove&Co Secures $150 Million in Funding

Petlove&Co, a digital platform centered around pet products and services, headquartered in São Paulo, has announced the successful completion of a funding round. Approximately $150 million (R$750 million) was raised, with Riverwood Capital leading the investment.

Company History and Growth

This funding round represents nearly a doubling of all previous capital raised by Petlove throughout its history. The company’s origins trace back to 1999, initially operating as PetSuperMarket during the early stages of internet commerce.

Today, Petlove maintains a robust online store, providing a diverse selection of pet-related products and services to consumers.

Investment Details

Alongside Riverwood Capital, participation in this funding round included Tarpon, SoftBank, L Catterton, Porto Seguro, and Monashees.

According to Crunchbase data, the company’s total funding now reaches $225.8 million since its inception. A significant portion of this, exceeding $192 million, has been secured since January 2020.

While the specific valuation of this latest round remains undisclosed, Petlove reported a 65% increase in overall sales in 2020 when compared to the previous year.

Strategic Use of Funds

Talita Lacerda, CEO of Petlove, stated that the newly acquired capital will be allocated, in part, to the expansion of the company’s logistics network.

A key objective is to accelerate delivery capabilities, particularly through the expansion of its express delivery service, Petlove Já. This service currently offers four-hour delivery in select Brazilian cities, including São Paulo and Belo Horizonte.

Subscription Service Expansion

Investment will also be directed towards the growth of Petlove’s subscription program, which is positioned as a pioneering service within the Brazilian market.

The company experienced “substantial growth” in subscription service adoption during the pandemic, with subscriptions accounting for 75% of Petlove’s total volume, as reported by Lacerda.

Market Opportunity and Investor Perspective

Francisco Alvarez-Demalde, co-founding and managing partner at Riverwood Capital, emphasized the strength of the Brazilian pet market.

He noted that Brazilian consumers are increasingly seeking digitally native products and services characterized by a strong focus on customer satisfaction.

Recent Developments and Acquisitions

Petlove’s evolution has been marked by recent integrations and acquisitions, including DogHero, Vetus, VetSmart, and the launch of Porto.Pet.

“We have built an increasingly comprehensive and inclusive platform to meet the needs of all stakeholders in this rapidly expanding market,” Lacerda explained.

Brazil's Pet Market Position

Brazil currently ranks as the fourth-largest pet market globally in terms of total expenditure.

Data from the Instituto Pet Brasil indicates that total sales within the Brazilian pet market exceeded US$7 billion (R$40 billion) in 2020, representing a 13.5% increase year-over-year. Petlove itself experienced a 65% growth rate during the same period.

Pet ownership rates are notably high in Brazil, with 60% of the population owning pets, compared to 50% in the United States.

Company Size and Industry Recognition

According to PitchBook, Petlove currently employs over 400 individuals.

Alex Szapiro, head of Brazil and operating partner of SoftBank Latin America Fund, lauded Petlove’s efforts in establishing “the largest ecosystem in Latin America,” describing it as “one of the most extraordinary in the segment and in the entire retail sector.”