Bengaluru-based pet care startup Supertails is betting big on services like veterinary care and grooming to set itself apart from quick commerce majors like Zepto, Blinkit, and Instamart, which are aggressively expanding their pet supply offerings. Backed by Fireside Ventures, the startup plans to launch offline centres in select cities that will function as both retail stores and pet care hubs, offering consultations, vaccinations, and grooming services.
Co-founder Vineet Khanna believes services hold better margin potential than retail, paving the way for profitability within 24-36 months, even as Supertails maintains 100% year-on-year revenue growth. Unlike q-commerce players, which focus on speed and scale, Khanna argues that pet care services require a relationship-driven approach, making it difficult for these platforms to enter the segment.
Despite its rapid growth, Supertails’ losses widened to Rs 41.1 crore in FY24, up from Rs 30.6 crore in FY23, even as revenue nearly doubled to Rs 67.3 crore. However, none of its quick-commerce competitors are profitable either, despite their larger scale.
Currently, less than 70% of Supertails’ revenue comes from pet supplies, with pharmacy, healthcare, and private labels accounting for the rest. The company is working towards a 50-50 revenue split between products and services, aligning with mature pet care markets like the United States. To keep up with the quick-commerce boom, Supertails has introduced 15-30 minute deliveries in select cities. The rise of q-commerce has pushed major manufacturers like Mars, which owns Pedigree and Royal Canin, and Drools, backed by LVMH-linked private equity firm L Catterton, to focus on smaller packaging, which sees higher demand in this channel. While this shift has reduced Supertails’ average order value by 10%, it has simultaneously increased customer frequency by over 20%, offsetting the impact.
The company operates through four mother warehouses, which serve as national hubs connected to dark stores set up and operated by Zippee, a dark-store logistics startup. By engaging in a fixed-cost model with Zippee, Supertails aims to optimise cost absorption and efficiency. To strengthen its brand presence, Supertails has launched three private labels: Henlo, a mid-premium dog food brand that bridges the gap between imported high-end brands and affordable local options, with plans to expand into cat food; Scoopy, an affordable cat litter brand; and Scalers, a budget-friendly pet accessories line.
Supertails has raised $31.4 million across five funding rounds and was valued at $62.8 million as of August 2024, according to Tracxn. Its key investors include Fireside Ventures, which holds a 14.2% stake, Saama Capital with 14.5%, DSG Consumer Partners at 10.8%, and Bollywood actress Deepika Padukone.