Guangdian, Fosun lead round for Chinese pet products player

The previously received RMB100 million in Series A funding from Tiantu Capital, Ares Management and Xingzhen Investment in 2018. The new capital will be used to enhance the company’s online-to-offline (O2O) operations and for product development, according to a statement.

Established in 2014, Crazy Dog produces foods and toys for pets, as well as other daily necessities. It relies heavily on online retail channels such as JD.com, Alibaba Group's Tmall, and Amazon. There are also several offline stores that showcase and sell products. The company wants to add 20 stores by the end of 2019.

Crazy Dog claims to have generated RMB320 million in sales revenue for 2017 and RMB600 million for 2018 on the back of more than five million dog food shipments. It has also collaborated with more than 3,000 offline pet hospitals and pet products retailers to expand coverage.

Average expenditure among Chinese dog and cat owners was more than RMB5,000 per pet in 2018, up 15% year-on-year, according to a white paper published by goumin.com, an online pet forum. It estimates the dog and cat market is worth over RMB170 billion. Around 260 million Chinese people registered as either dog or cat owners as of 2015, according to the government.

The food segment, which accounts for around 40% of the overall expenditure on pets, is largely dominated by foreign brands such as Pedigree, Whiskas, Hills, and Purina. Domestic brands include Hebei Rongxi Pets Food, Haozhuren, and Sanpo.

A number of pet-focused Chinese companies have received PE backing. Petkit, which produces smart devices for pets such as water and food dispensers, raised $20 million in a Series C round led by Qiming Venture Partners. Meanwhile, Mollybox, a subscription-based pet e-commerce company that delivers cat food, cat litter, snacks, toys, got a $13 million Series B led by DCM Ventures and Digitalis Ventures.

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• Topics
• Greater China
• Early-stage
• Consumer
• China
• Fosun Group
• Consumer