Pune-based pet care startup Wiggles, which has raised a funding of over $6.5 Mn to date, is struggling for survival. The startup has only two months of runway remaining and most of its employees have left as it has not paid salaries for over a year.

It finds itself on the brink of a collapse due to an aggressive expansion spree gone wrong, rising losses, and failure to secure fresh funding.

Before we delve into the struggles of Wiggles, let’s first take a look at its journey so far.

Founded in December 2018 by Anushka Iyer and her father Raj Venkataramani, Wiggles started as a local pet care startup in Pune. Iyer, a longtime volunteer with Blue Cross, envisioned an integrated pet care ecosystem offering services like home visit by veterinarians, groomers, and a product line that included pet food, treats, medicines, and supplements.

In its early days, Wiggles tried setting itself apart from the traditional aggregator model by employing full-time veterinarians and groomers for better quality control. The business grew rapidly, particularly during the Covid-19 pandemic, when pet ownership surged, coupled with a rapid growth in the ecommerce sector.

Riding this momentum, the startup expanded operations to two more cities – Mumbai and Hyderabad – and introduced a comprehensive suite of offerings. This included the launch of a pet boarding facility in Pune and the establishment of a veterinary hospital.

It also launched pet care products with 40 SKUs, spanning food, treats, supplements, and over-the-counter medications. Wiggles adopted an omnichannel approach, selling the products via its own website, ecommerce platforms and offline distribution network.

Wiggles’ Expansion Spree

After witnessing high growth during the pandemic, the startup raised $5.5 Mn in its pre-Series A funding round in October 2021. The round was led by Anthill Ventures, with participation from Panthera Peak Capital and angel investors like Varun Alagh of Mamaearth, Nikhil Bhandarkar of Ubiquity Capital, among others. Flush with funds, it set on an aggressive expansion plan.

Wiggles acquired rival........

© Inc42