Nestlé acquires minority stake in Drools Pet Food

On 26/05/2025, Swiss consumer goods company Nestlé S.A. announced that it had acquired a minority stake in Bengaluru-based Drools Pet Food Pvt. Ltd., marking one of the most closely watched investments in India’s fast-growing pet care industry. The transaction officially lifted Drools to unicorn status, with the company confirming a valuation of more than $1 billion after the investment. Nestlé stated that the deal was a financial investment and that Drools would continue operating independently, both strategically and operationally. Financial details of the transaction were not publicly disclosed. The investment represented Nestlé S.A.’s first direct investment in an Indian brand and highlighted the company’s increasing interest in India’s expanding pet nutrition market. Founded in 2010, Drools grew into one of India’s largest homegrown pet food companies, offering dog and cat nutrition products across domestic and international markets. Prior to the Nestlé deal, Drools had raised funding from private equity firm L Catterton in 2023 at a reported valuation of around $600 million. The new valuation above $1 billion placed Drools among India’s unicorn startups and reflected rising investor confidence in the country’s pet care and pet nutrition sectors. The partnership also underscored broader changes in consumer spending patterns in India, where urban pet ownership and premium pet food demand have expanded steadily over recent years. Nestlé already operates globally in the pet care segment through brands such as Purina, and the investment in Drools strengthened its exposure to India’s domestic market without taking operational control of the company. Why This Moment Matters The investment reflected how India’s pet care market had become attractive to major international consumer goods companies. Drools reaching unicorn status through a strategic investment rather than a traditional venture capital round also illustrated how established global corporations were increasingly using minority stakes to participate in high-growth Indian consumer brands.