Butternut Box, a startup based in the United Kingdom specializing in the preparation and delivery of healthy food and supplements for dogs, is in the process of securing £280 million ($354 million) in funding from General Atlantic and L Catterton.
Established in London in 2016, Butternut Box caters to various European markets with a wide range of culinary offerings, encompassing both meat and vegetable options, all featuring “human-quality” ingredients that have been rigorously tested and approved by real individuals.
While Butternut Box had previously raised slightly over $110 million through multiple funding rounds, this latest infusion of capital stands out in a venture capital landscape that has largely favored smaller early-stage investments. This notable investment underscores the sustained and robust demand in the pet-related market.
Indeed, the broader pet food industry was valued at $100 billion in 2022, with dog food accounting for over 40% of this sector. However, a significant challenge arises from the fact that an estimated 65% of dogs in the United Kingdom alone are overweight. This is where Butternut Box comes into play, as it crafts and provides various dog-friendly meals along with health-oriented snacks and supplements. Additionally, it offers customers the flexibility to choose their desired products for home delivery through a subscription service.
Up until now, Butternut Box has been serving customers in the U.K., Ireland, Netherlands, Poland, and Belgium. With an additional £280 million in funding on the horizon, the company is poised to expand further into European markets.
It’s worth noting that the funding transaction is still in the process of finalization, pending the completion of customary regulatory requirements. The company anticipates concluding the funding round sometime during this quarter, although the announcement may have been prompted by an early report from Sky News that surfaced today.
Butternut Box Image Credits: Butternut Box
So far, Butternut Box has served the U.K., Ireland, Netherlands, Poland, and Belgium, but with another £280 million in its coffers, the company says that it’s now looking to expand further into Europe.
It seems, however, that the transaction is still in the midst of closing, with the company noting that it’s “subject to customary regulatory conditions.” In all likelihood, the announcement was hurried somewhat by an early report from Sky News that emerged today.
Butternut Box said that it expects to close the funding some time this quarter.
