A $125 million Series C investment round, led by US scale-up firm Prysm and Sydney-based growth capital firm TDM Growth Partners, has made online pet supplies company Pet Circle another Australian unicorn.
Other investors in the round include UK-based long-term global investment management firm Baillie Gifford and AirTree Ventures which has been an investor since 2017 although co-founder Craig Blair had been a personal backer even earlier first investing in Paws for Life, as it was then known, in 2012.
Paws for Life was founded by Michael Frizell, a former corporate adviser in 2011. The idea for the business came from his father who found it difficult to take home large packs of dog food after injuring his back. Why couldn’t bulk packs be ordered online and delivered to the door?
Blue Sky Venture Capital committed $1.5 million to Paws for Life in a Series A capital raising in December 2013.
AirTree Ventures acquired Blue Sky’s stake for an undisclosed sum in early 2017 in a deal that generated 1.8 times invested capital net of fees to exiting investors.
US private equity firm Francisco Partners made an undisclosed sum growth investment in Pet Circle late in 2017 in a round in which AirTree increased its investment.
Pet Circle’s online sales have increased strongly over the past 18 months with some specialty lines such as puppy and kitten food increasing by around 50%.
The company plans to use the new capital to increase the range of products it stocks and add extra warehouses to its national network.
Pet Circle is profitable but has consistently reinvested much of its revenue into market expansion. The rate of that expansion could be about to be stepped up.
New investor Prysm focuses on fast growth companies. Other companies it backs include electric SUV maker Rivian.
Image: Pet Circle founder Michael Frizell and Milo.