Tech investor Silvertree Internet Holdings has invested an undisclosed amount in Pet Heaven.
The online pet food and accessory store aims to further accelerate its growth throughout SA. The investment will see Silvertree provide expansion capital for Pet Heaven, as well as support Pet Heaven through synergies with other Silvertree e-commerce companies, such as Faithful to Nature and Cybercellar.
Silvertree Internet Holdings' African investment ambitions come after the Cape Town-based consumer-focused Internet platform recorded 330% per annum growth for 2015, its strongest year since operations began in 2013.
Through its B2C e-commerce platforms, which include Click n Compare, Faithful to Nature, Cybercellar, Healthcart and recently-acquired PriceCheck, Silvertree reached 25 million unique consumers in Africa in 2015, a 50% increase on the previous year.
Pet Heaven's core product is pet food, with veterinarian-approved ranges such as Eukanuba, Hills and Royal Canin. Subscribers get delivery of food, on a recurring subscription.
The start-up says high demand for its products allowed Pet Heaven to grow revenue 150% year-on-year over the last two years with limited marketing spend.
Supported as a young start-up by the 88mph incubator, Pet Heaven says it has focused on making the economics of pet food delivery work, despite the small margins and heavy weight of pet food courier deliveries.
The team operates small warehouses in Johannesburg and Cape Town, and focuses on cost and performance of logistics, marketing and product sourcing.
The Silvertree investment will be used for increased marketing, broadening the range of pet accessories and new food brands that the site stocks, further IT investment, and growing the team to support continued market penetration across SA.
"We've seen huge demand from pet owners for affordable, convenient delivery of pet essentials, and we're excited to be making our offering available to far more customers, with the support of Silvertree," says Schalk Kearney, CEO of Pet Heaven.
"Pet Heaven's subscription model is great for customers, plus it helps Pet Heaven turn once-off customers into lifelong fans," says Paul Cook, Silvertree director.
"We have been blown away with what the team has already achieved, and we're excited about Pet Heaven's business, as well as the opportunities for collaboration between Pet Heaven and other e-commerce companies in which we have invested. Pet Heaven has already proved it's entirely possible to make money in niche e-commerce in South Africa, through disciplined, lean execution - and there's lots more to come."
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