Feeding our office dog and many other pups Australia wide with their subscription meal service, Dinner Bowl, it’s safe to say Mad Paws (ASX: MPA) understands the subscription market.
The Company has today announced the acquisition of one of Australia’s largest dog treats and toys subscription business, Waggly Club.
Since its inception when founded by Kate Herbert in 2016, Waggly Club has been providing fur parents with monthly subscription boxes containing Australian made treats and toys customised to each dog’s needs. There are approximately 2000 boxes ordered per month, The subscription based model accounts for 70% of Waggly Club revenue with the other 30% coming from sales from their online store. Over the past year revenue has increased by almost double from $800,000 to $1.5 million showing strong potential for further growth and scalability.
The acquisition of Waggly Club aligns well with Mad Paws’ mission to become the leading pet services ecosystem. The primary business activity is their online pet services marketplace putting fur parents in touch with trainers, pet sitters, groomers and walkers through their database of over 19,000 service providers. More than 180,000 services have been booked through the Mad Paws marketplace since launch.
In 2020 Mad Paws began offering a pet insurance product as well as their Dinner Bowl meal subscription service.
Waggly Club’s founder and CEO, Kate Herbert said: “As we look to our next horizon, my aim is to scale Waggly and reach more and more dogs and their fur parents each month. To this end, I feel Mad Paws and Waggly are a perfect match.
“Mad Paws’ current and future offerings in the premium subscription market are strongly aligned with Waggly’s vision, value proposition and subscription expertise, and our products are complementary not only to the Mad Paws Dinner Bowl and Insurance offerings, but also for distribution and promotion via the Mad Paws marketplace network.
“On a personal note, it’s a dream of mine to be staying on and working with Mad Paws’ exceptional leadership team to help us navigate through this next, exciting phase. It’s a far cry from my kitchen table all those years ago, and I’m looking forward to delivering even more tail wags across the country.”
Mad Paws is set to acquire 100% of Waggly Club for $2 million in cash and $1 million in Mad Paws shares. A further $500,000 will be payable in cash subject to Waggly Club achieving revenue based hurdles before December 2022.