MUMBAI: Swiss consumer goods giant Nestle has picked up a minority stake in the Indian pet food startup Drools. The Bengaluru-based company did not disclose the specifics of the deal but said it was valued at $1 billion post-investment, joining the ranks of unicorn startups. “This is a financial investment by the company, and Drools will remain strategically as well as operationally independent,” Nestle said in a statement on Monday, without elaborating further.

Nestle’s investment in Drools comes at a time when the broader pet food and pet care space in India is seeing a surge in growth, led by an expanding crop of millennial and Gen Z pet parents who do not mind paying more to provide quality nutrition and care for their pets. Nestle has a large pet care business (including pet food) operating under the master brand Purina, which made up about 20.7% of the company’s total sales in 2024. In India, companies like Godrej Consumer Care have also forayed into the pet care market of late.Backed by L Catterton, Drools competes with a mix of global and local pet food brands in India, including Mars PetCare and Heads Up For Tails. Drools last raised $60 million from L Catterton in June 2023. Drools is the fourth unicorn of the year after Netradyne, Porter, and JSW One Platforms.