#MCTech3: Top tech and startup news this evening

In today’s newsletter:

• Drools fetches $60M from L Catterton?
• Listed new-age firms slash ESOP costs
• Govt warns of honey trap phishing mails

Drools fetches $60M from L Catterton

Most startups continue to experience an ongoing funding winter, with limited access to capital. However, more traditional-looking companies that are profitable are certainly attracting private equity (PE) investments.

Earlier this month, we reported that WestBridge Capital?invested in KPN Farm Fresh. The PE firm is also considering an investment in Milky Mist. And today, we have US-based L Catterton drooling over pet food company Drools.

DRIVING THE NEWS

L Catterton has picked?up a minority stake in Drools for $60 million, one of the largest pet food companies in India.?

• This marks the PE firm's latest investment in the Indian retail sector, following its investments in Fabindia and Sugar

Globally, L Catterton has backed more than 10 pet care and food companies. This investment is therefore a thematic one for the firm.

• Drools, meanwhile, wants to leverage L Catterton's brand-building expertise as it gears up for the next leg of its growth.?

THE TIMING

Drools' funding comes at a time when the pet food market in India is growing rapidly, thanks to the increased adoption of pets in the country post-pandemic.

• Pet population in India grew to 31 million in 2021 from 19.4 million in 2018, according to a report by Mordor Intelligence
• India's pet food market is estimated to be between Rs 4,500-5,000 crore, as per a Statista report

MEANWHILE…

Construction materials marketplace unicorn Infra.Market is in?talks to raise around $150 million?from US-based Varde Partners, sources told us.

• The proposed capital raise will likely be via the issuance of convertible instruments

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