Butternut Box, a tech-enabled dog food company, has raised £280 million ($351.5 million) in the largest pet tech venture capital investment to date .
The round, which was led by General Atlantic, follows Butternut Box’s acquisition of Polish pet food brand PsiBufet in April. Sky News reported that deals value the company at over £500 million.
Butternut Box, which was founded in 2016, is a direct-to-consumer (D2C) subscription service and mobile app that promises tailored health food for dogs. This largest VC round is the largest ever in the pet tech category, according to PitchBook data, surpassing London-based pet insurance provider ManyPets’ $350 million EQT-led Series D in 2021.
It has also put this year on track to surpass the amount of capital raised by pet tech startups last year with 2023’s figure currently standing at $827 million.
VC interest in pet tech spiked in 2021 as the pandemic pushed more households toward pet ownership. The broader shift toward sustainability and wellness also gave rise to companies like Butternut Box that focus on healthy food for animals. The pet care market is expected to reach $368.9 billion globally by 2023, according to Fortune Business Insights.
Since 2021, the number of rounds involving pet tech startups has fallen as cost of living crises in many countries have limited consumer spending and D2C businesses fall out of favor with venture investors.
Butternut Box’s investment has far eclipsed other VC deals this year, with the next-highest deal being pet wellness startup Lyka’s A$55 million (around $35 million) round in June from backers including Point King Capital and AfterWork Ventures.
Featured image by Carol Yepes/Getty Images
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