The City That Never Sleeps... and Now, Never Stops Barking

Image from Nikkei Asia

Mumbai, India, the city that never sleeps and continues to grow in terms of economy and population. With a growing population of 21 million and counting, its metropolitan population exceeds that of Los Angeles and New York City combined. On top of Mumbai’s vast population, the pet industry is booming in India, particularly among those with deeper pockets than others. The boom began during the COVID-19 pandemic, when people had more time to spend with their pets — and that’s when animals became the ideal companions, offering the emotional support many were seeking, said Redseer analyst Amitabh Kumar.

Image from the Business Research Company

To add to the pet industry’s boom, it is estimated to expand from $3.6 billion in fiscal 2023 to between $7 to $7.5 billion in fiscal 2027, local consulting firm Redseer projects. This estimate is based on the predicted increase in spending on food, grooming services, and animal healthcare, which account for about 80% of total expenditures. Pet-related investments, driven by an increase in additional pet healthcare fintechs, have reached an estimated $180 billion from fiscal 2019 to 2023. As more people become involved in animal healthcare and services, I have observed a trend of increasing animal fintech startups. The reason is that, with most pets being adopted, rescued, or bought during the COVID-19 pandemic, around this time, people’s pets would already be around the age of 4–5. If you’re not a pet owner, you would have to multiply your pet’s age by 7 to compare their age to human years. So you could probably guess that being 4–5 years old for a pet is quite old already. By this time, a dog could show early signs of joint issues, and a cat’s metabolism would start to slow at this age. This is what comes with an increase in vet visits over the next few years, as people’s pets begin to age from the COVID-19 pet boom.

"The availability of specialized services such as pet insurance, grooming, and boarding, alongside improved pet care products like specialized food and health care, has made it easier for pet owners to provide for their pets, driving adoption," Kumar said. At this time, I would suggest that it would be a good opportunity to invest in or acquire a private equity stake in these pet healthcare businesses, starting now.