Image: Mike Frizell, CEO of the Pet Club. Source: Submitted
Last week the Unicorn Pet Club of Australia announced it was in the final stages of closing a $75 million funding round – a significant increase in 2023 levels. CEO Mike Frizzell points to culture changes and the addition of premium pet food as key factors in the company’s growth and success.
In the year Starting out as Paws For Life in 2011, the business has changed dramatically since then. In addition to changing its name to Pet Club, the company has grown exponentially.
He won three years after opening the doors of e-commerce SmartCompanySmart50 Awards. In the year It has gone on to secure multiple funding rounds, including a $125 million Series C that reached unicorn status in 2021.
Pet Circle’s recent rise is particularly relevant given Australia’s current economic climate and challenging VCs. The first half of 2023 didn’t see that much cash dispersed, which resulted in trades such as bringing in different managers and Milkrun closing stores (before selling the name to Woolworths).
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But the pet club is much better. According to the company, it sees sales of $308.8 million by 2022 and has significantly increased its product offering to 13,500 SKUs. This makes it the largest online supplier of pet products in Australia.
Macro trends have created a booming pet industry.
CEO Mike Frizzell said this success is a combination of several macro trends that have emerged over the past few years.
“The pandemic was a clear driver for the rapid acceleration of pet ownership. However, there has been a key cultural shift, particularly among millennials, where more pet parents view their pets as family members or as part of themselves,” Frizzell said in an email. SmartCompany.
“This humanitarian trend has led to changes in products that are especially suitable for their animals or species.”
Frizzle also pointed out that the demand for premium products in pet food and medicine has increased. In a way, this natural and sustainable food and from consumers for their own food and drinks is increasing in popularity.
According to Frizzell, sales of Pet Club’s premium pet food are up 24 percent year over year. There is also a growing awareness of race-specific conditions and how certain foods can help with their health risks.
“Pet parents [are] By switching to science-based and natural food to ensure the best health outlook for their furry family,” Frizzell said.
“The rise of nature-based brands with more sustainable manufacturing and transparent ingredient lists speaks to the further shift in premium food as consumers realize how much their purchasing choices impact. Our mission is to educate pet parents through our channels and Vet Squad to help create better lives for their furry friends.” .
The pet club is moving into the pet insurance space
Over the past few years, animal insurance operators have moved away from traditional insurance companies such as HCF. It has even seen an increase in retailers such as Woolworths and Pet Barn.
Statistics from finders Consumer sentiment tracker It revealed that 15% of Australian pet owners currently have pet insurance, with a further 10% planning to take out a policy in the future.
Further statistics show that one in five Australian pet owners have taken their pet to the vet three or more times in the past 12 months.
Australia’s pet insurance boom ended in late June, with ASIC placing 38 temporary stop orders on 67 pet insurance products issued. Hollard Insurance Company Pty Ltd and PetSure Australia.
This has affected the products sold by the brands. Woolworths, RSPCA, Petbarn, Guide Dogs, Medibank, Bupa and HCF
“ASIC has issued interim orders to prevent consumers from accessing pet insurance products that do not suit their objectives, financial situation or needs.” A statement read.
The temporary restraining order was to last for 21 days.
May Pet Club has become the latest Australian company to offer pet insurance. Frizzle’s company always aims to be upfront and transparent about its products.
“As part of our quoting tool, product disclosure and target market determination, as well as our pet care team over the phone, we educate our customers on the most important aspects of a claim. It requires the money up front when the claim is reviewed, and the costs when the claim is approved.” “We will pay,” Frazell said.
“Also, during the cooling off period of the purchase, we suggest that the customer complete a pre-existing condition assessment to ensure they are aware of any illnesses that may occur prior to the policy, which will not be covered during the claim period.”
Frizzell said the policy is customizable and easy for customers to understand.
“We are one of the few pet insurance policies on the market that has no cap on accident and illness payouts, so pet parents can claim up to the annual limit.”
But the pet club doesn’t stop here – it has its eyes on the future and other pet markets that could be injected with the new cash injection.
“With this investment, we want to grow ours A pet Circle Let’s think about moving to new verticals that will solve the insurance provision and other problems that we have recently started A pet Parents love it A pet Pharmacy,” said Frizzell