Direct-to-consumer (D2C) brand Licious has invested $1 million in Bengaluru-based fresh pet food startup Pawfectly Made, its first strategic investment. Earlier last month, the company invested in strategic acquisitions and expanded and deepened its brand presence. Arpita Ganesh, who previously founded Buttercups, an online lingerie brand acquired by Amazon, launched Pawfectly in 2020.

Pawfectly will continue to operate as a separate entity with its production processes and supply chain. Nichelle Kamat, vice president of the category at Licious, said the company would invest in areas where Licious can integrate back-end and front-end operations, as well as smaller brands in the ready-to-eat space.

“Pawfectly is a great fit for us given the shared vision and synergies across the value chain. This investment will allow us to access a unique portfolio of consumer games and products to complement our infrastructure.” Licious raised $150 million in Series F2 funding within six months of becoming a unicorn. The round was led by Amansa Capital, Kotak PE, and Axis Growth Avenues AIF-I. Last October, the company raised $52 million at a $1 billion valuation, making it one of the first unicorns in India’s booming D2C space.

According to an April 26 media report, total funding in the D2C space has grown from $105 million a year ago to $153.4 million this quarter. However, experts say many D2C brands are flattening due to the overall negative market sentiment and customers shopping offline after Covid, and the industry is expected to see consolidation this year.
Industries such as beauty and wellness, clothing and accessories, and food will see consolidation this year, experts say.