Prysm Capital stocks up at Pet Circle
Pet Circle has found a deep-pocketed investor to see it through a ruff time in private markets, locking in a top-up investment from a US venture capital firm and cementing its $1 billion-plus valuation.
It is understood San Francisco-based Prysm Capital tipped an additional $75 million into the online pet supplies business on Wednesday, first flagged by Street Tal, at a pre-money valuation of $1.125 billion.
Prysm first came on the scene in December 2021, leading a $125 million raise alongsideSydney-based TDM Growth Partners.
Michael Frizell, founder and CEO of Pet Circle, with Milo, picked up money from Prysm Capital and TDM in 2021. Louise Kennerley
“The proceeds, together with Pet Circle’s existing cash balance of circa $65 million, will be used to ensure Pet Circle has complete financial flexibility for at least the next 3-5 years,” the company told investors on Thursday.
“This puts the company in a strong position to be a beneficiary of the industry consolidation we see taking place.”
Pet Circle pulled in a whopping $308.8 million in sales of dog food, flea treatments and other products in the 12 months to the end of June 2022, growing at 16 per cent. However, rising costs – including distribution and administration expenses – more than tripled the business’s losses from $9.5 million to $31.8 million. It ended June 30 with $76.2 million cash in the bank.
While Prysm Capital is less known to Australians, the growth venture capital firm has significant domain experience, having backed Pet Circle’s US equivalent Chewy.com in 2016.
NYSE-listed Chewy was acquired by PetSmart for $US3.35 billion in 2017, before being spun out in an IPO in 2019 at US$22 a piece. Its share price is languishing at $US38 ($57) or about a
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