Lyka, a Pet Food Startup, Secures an Additional $25 Million, Increasing Series B Funding to $55 Million.
Lyka Pet Food was founded in 2018 by CEO Anna Podolsky and integrative veterinarian Dr Matthew Muir, after Podolsky’s beloved Border Collie cross, named Lyka, suffered her own health issues.
Funding Round Info:
Lyka, a pet wellness startup based in Sydney, has recently garnered an additional $25 million in follow-on funding to expand its operations. This latest investment brings its Series B round to a total of $55 million, following an initial funding of $30 million that was raised six months prior. This financial boost has enabled Lyka to extend its services to include Tasmania, Western Australia, and various regional zones across Australia. The startup is also in the process of constructing a new kitchen in Melbourne and now boasts a workforce of nearly 200 employees. Podolsky views this supplementary investment as a testament to Lyka's ability to significantly disrupt the pet industry. A few months after Lyka concluded its Series B round in October 2022, the StepStone Group expressed its interest in the startup, Podolsky disclosed in an email to SmartCompany. Considering the tightening capital market, they decided to proactively secure the additional capital on favourable terms to maintain their rapid growth trajectory. This early fundraising was strategized as a precautionary step against a potential recession, which would make capital raising more challenging. The follow-on round was also backed by Australian VCs AfterWork Ventures, Shearwater, and Point King Capital. These investors have supported Lyka since its early financing rounds and are now "increasing their investments in this one," stated Podolsky.
About Lyka Pet Food:
Lyka Pet Food was established in 2018 by CEO Anna Podolsky and integrative veterinarian Dr. Matthew Muir in response to health issues faced by Podolsky's cherished Border Collie mix, Lyka. Podolsky recounts her astonishment upon discovering what ingredients were actually included in her dog's food after researching the pet food industry. Yet, when she turned to preparing Lyka's meals herself using fresh, wholesome, and nutritious ingredients, she noticed a dramatic improvement in her dog's health. She observed an immediate transformation in Lyka's vitality, fur quality, and even dental decay. Recognizing the benefits, Podolsky felt compelled to make these healthful meals available to other pet owners who prioritize their dogs' health, quality of life, and longevity, she explains.
About AfterWork Ventures:
AfterWork Ventures is a community-powered venture capital fund based in Australia and New Zealand. They are committed to investing in next-generation tech companies, particularly at the seed and pre-seed stages, with cheque sizes ranging from $100k to $500k. They are sector-agnostic, focusing more on the potential of the team and their ambition to make a significant impact.
Their investment philosophy is unique in that it is community-powered. They have a community of over 100 tech operators who provide substantial support to their portfolio companies, enabling them to punch above their weight.
Some of their portfolio companies include:
Prophero, an AI-powered platform that simplifies property investing.
Lyka, a pet wellness company that provides lightly cooked pet food to over 15,000 pets across Australia.
Klikit, a software solution that helps restaurants maximize profits by managing delivery across multiple brands, locations, and channels.
Samphire Neuroscience, a neurotechnology company that develops products to enhance women's health and lifestyles.
The team at AfterWork Ventures includes a diverse group of individuals from various backgrounds. Some of the team members include Cheryl Mack (CEO of Aussie Angels), Niamh Mooney (Founder of Software), Ivan Lim (CEO of BROSA), and Ben Milsom (Co-Founder of Plenti). They are supported by 120 of the brightest operators from impressive places, further strengthening their community-powered approach.
About Point King Capital:
Point King Capital is a Sydney-based private equity firm that provides long-term growth equity and early-stage capital to exceptional founders and entrepreneurs of outstanding global consumer companies. They are supported by a select group of investors, including top-tier global entrepreneurs and sophisticated family offices.
Their investment philosophy is characterized by their extensive operating experience in the consumer sector and access to a unique global network of operating experts and business leaders. They invest on a 'deal by deal basis', which allows for greater flexibility in structuring transactions that best align with the objectives of founders. They are not bound by rigid investment timelines and do not have external pressures to monetize their investment.
Point King Capital is passionate about investing in profitable consumer companies with a global focus. They only invest in opportunities where there is a genuine desire from management teams to have an active and supportive partner, and where there is an opportunity to utilize their expertise and resources to build powerful, profitable, and durable brands. Recent investments include Lanolips, a global skincare brand, and Factor Bikes, a premium bike company. They also invested in Genexa Inc., an over-the-counter medicine company.
About Shearwater Capital:
Shearwater Capital is a venture fund that stands out for its unique approach to venture capital. The fund is founded by three partners, Zac Zavos, Charles Gibbon, and Mike Gregg, who have built their own businesses and are investing their own capital. They focus on investing in people rather than ideas, seeking founders who are passionate about building generationally great companies.
Their investment philosophy is centered around backing high-integrity founders to build world-class businesses. They are not constrained by fund horizons or limitations, allowing them to play the long game for truly outstanding companies. They invest in fast-growing tech companies, particularly those that are solving significant problems in complex domains. They value business models that are or resemble recurring revenue, and they prefer markets that are rapidly growing.
Their portfolio includes a diverse range of companies such as:
Playground XYZ, a company on a mission to master the art and science of maximizing consumer attention. It was acquired by GumGum Inc. in 2021.
Earlytrade Marketplace, a cloud-based B2B network that allows firms to invest their own cash-at-bank into their supply chain.
Sitemate, a flexible software platform that enables companies in the industries to digitize and streamline how they capture, organize, and track work.
LivePreso, a platform transforming enterprise sales by automating its most time-consuming activity – creating customized presentations.
Fuel50, an AI Marketplace that smart-matches a company's people to learning, vacancies, gigs, projects, and career journeys.
Amber Electric, a company that passes through the real-time wholesale price of energy for $15 a month, allowing consumers to use power when cheap renewables are generating.
Lyka, a company that offers custom subscription plans of nutritious, freshly cooked dog food, delivered to consumers' front door.