March 11, 2022

MedcoVet, Petlove & Petco

🐶 Industry News

– Had the chance to talk with Alon Landa, founder and CEO of MedcoVet, a startup that partners with vet clinics to offer laser therapy at home. Alon began his career as an engineer, but eventually started advising medical device and healthcare companies. A few years ago, Alon was approached by a scientist claiming that a hand-held light device he created could reduce inflammation in the body. Alon was surprised to find thousands of papers on the topic in PubMed, and tried to understand why the technology wasn’t being adopted. He figured they key was bringing the treatment into the home, with veterinary support enabled by the web.

Alon and his team raised over $5 million to get the business rolling and today vet clinics in 13 states use MedcoVet to treat dogs at home. The business model offers laser therapy as a service: the vet prescribes the Luma and MedcoVet configures and ships the device. The company and the vet then split the weekly rental fee. Because treatment takes place at home, pet owners don’t have to make repeated trips to the clinic, and the veterinarian is free to treat other pets in-clinic.

Because 1 in 4 dogs will deal with arthritis at some point, Alon believes the total addressable market for his service is over $1 billion, in the US alone. MedcoVet is looking to raise a Series A round soon to scale the business and eventually transition into the human space. Alon can be contacted through his website or via LinkedIn.

– Recent earnings reports from some of the big pet companies:

• Petco, the second largest US pet retailer, reported 2021 revenue of $5.8 billion, an 18% increase over 2020. The company also announced that it is acquiring the remaining 50% stake in its joint venture with Thrive Pet Healthcare, which currently operates 100 vet clinics within Petco stores.
• PetIQ, a provider of pet meds and low-cost wellness clinic services, reported 2021 revenue of $933 million, an increase of 20% over 2020. Pet meds made up 89% of the company’s sales. While the clinic services was only 11% of sales, the segment grew almost 100% in the past year.
• Covetrus, a provider of software and online pharmacy services to more than 100,000 vet clinics around the world, reported $4.6 billion in revenue for 2021, an increase of 5% over the previous year.

💰 Financing & Deals

• Petlove, the Chewy.com of Brazil, acquired Nofaro, a Brazilian pet insurance company. Founded in 2015, Nofaro insures over 25,000 pets. Brazil is the second largest pet market in the world, after the US.

• WellPet, a Massachusetts maker of pet food and treats, is preparing for an IPO that values the company at $2.5 billion. The company was acquired by private equity firm Clearlake Capital Group in 2020.

• Just Dogs, an Indian pet retail chain, has raised $6 million to expand its online presence. The fast-growing Indian pet market includes over 30 million dogs and cats.

🤷‍♂️ Somewhat Relevant

• Forbes takes a deep dive into how Petco‘s health strategy is paying off.

• A look at private equity in the veterinary market.

• The top 25 pet retailers in North America.

💼️ Pet Industry Jobs

• Digital Marketing Specialist – Barkibu (Spain/remote)

• Product Manager – Loyal (Remote)

• Software Engineer – Loyal (San Francisco/remote)