Petbuddy Group owns several pet food and supplement brands, including Buddy, Nutrolin, WAP, MediPaws and Little Big Paw. All of its businesses focus on sustainable products that do good for pets, pet parents, and the planet. Founded in 2019, Petbuddy Group does 40% of its business direct-to-consumer, and 60% B2B through pet stores and other retailers. It sells to over 45 markets around the world but has a particularly strong customer base in the Nordic countries.
With Petbuddy Group’s businesses selling multiple products DTC and B2B — and doing so via several offices, platforms, and marketplaces — its financial management is unnecessarily complicated. Each brand has its own product line, sales channels, and ads. As a result, Petbuddy Group was looking for technology that would support and streamline spending across its business model.
“Our structure means there is quite a lot of repetition and duplication between our different brands,” says managing director and co-founder Erik Wide Gustafsson. “We’re always looking for ways to use technology to save time and resources across the group.”
Petbuddy Group’s six-figure ad spend — mainly on Amazon, Google and Facebook Ads — placed a demand on cash flow for all of its brands.
With a large proportion of sales made to loyal customers via Amazon subscriptions and repeat purchases, it would have been very easy to predict demand for each product and scale up production accordingly. But inflexible lending stopped the group from putting that plan into action.
Wide Gustafsson explains: “It seemed obvious to us that, because we’re able to project demand so easily, an extra line of credit would make scaling our brands relatively simple. But we didn’t have a financial partner who could help us to make that happen.”
Juni credit has allowed Petbuddy Group’s businesses to free up the cash flow needed. The influx of working capital is used to buy more raw materials and products to increase its inventory.
With 60-day payment terms and 0% interest* on its extended credit line, the group now has the flexibility to ensure that its inventory becomes profitable before its repayments are due. Each brand can now scale faster than was previously possible.
“Working with Juni has helped us unlock growth with a positive cash conversion cycle when we scale brands on Amazon,” explains Wide Gustafsson. “The easy-to-use and intuitive platform makes handling spending across different companies and offices very easy."
That includes having a single dashboard to give at-a-glance, group-wide financial overviews, as well as detailed insights on transactions for individual accounts. With up to 40 IBAN accounts in USD, EUR, GBP, and SEK, plus as many virtual cards as it needs, Petbuddy Group can assign different accounts to different arms of its operations. This creates a payment infrastructure that eases administration for the group as a whole and each of its businesses.
With its brands growing rapidly, Petbuddy Group can continue to use its credit to increase its inventory, product lines and ad spend. As the investment is tied to very reliable projections, the group can focus spending on where it will deliver the biggest returns.
Since its businesses are now scaling sustainably, the group will be eligible for increased lines of credit as its sales continue to grow. It can make further investments to drive more growth.