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Petfolk, a veterinary urgent and primary care company, raised a $40 million Series B led by Movendo Capital, CEO Audrey Wystrach tells Axios exclusively.

Why it matters: Charlotte, N.C.-based Petfolk's raise is the third veterinary deal announced this week.

How it works: Petfolk — which has eight locations now with plans to open four more by end of year — offers 24/7 virtual and instant veterinary services.

With clinics across North Carolina, South Carolina, Georgia, and Florida, Petfolk provides primary care, exams and diagnostics, dental care, behavioral care and nutrition guidance.

Each of its clinics is profitable within a year of opening, Wystrach says. The company is planning an additional 20 clinics for 2024.

Details: The raise values the business at $200 million post-money, a source familiar tells Axios.

The raise represents a 2x step-up from Petfolk's $40 million Series A, raised in 2022, the source says.

Existing investors, including White Star Capital and Idea Farm Ventures, also participated in the round.

Funds will go toward expanding throughout the Southeast, with cities like Atlanta, Dallas, Houston, Orlando and Miami on the short-list, Wystrach says. 

The raise has an approximately 18-month runway, she notes. 

The big picture: If this week's spate of funding news is any indication, vet services is hot — and Wystrach says investor interest was reflected in Petfolk's fundraising process.

"We ran a really competitive process," she says, adding that alongside venture capital, private equity and strategic investors submitted term-sheets.

"Having been in the industry for 29 years, there is far more capital in the veterinary industry now than there was 29 years ago — guaranteed," she adds.

Of note: The majority of Petfolk's practitioners are women, Wystrach notes — a differentiator for the company from its competition.

Flashback: Wystrach founded Petfolk three years ago with her younger brother Michael Wystrach.

The siblings grew up on a ranch in southern Arizona, where they got firsthand experience with a bevy of animals — "from cows and horses to dogs and cats — and even an antelope," the CEO says.

State of play: Petfolk competes with a growing cadre of tech-forward veterinary providers.

Wystrach cited Modern Animal, Small Door Vet (currently in market for an investment) and Bond Vet (which secured additional money from existing investors this week) as peers. 

Similar to those companies, Petfolk is eschewing the traditional roll-up M&A that has heretofore characterized growth in the space, focusing on a pure de-novo strategy. 

The bottom line: "The interesting waves that are happening in the veterinary industry are much like what has happened on the human health care side," Wystrach says, noting an increased emphasis on consumer experience. 

Exclusive: Petfolk collars $40m Series B

The fundraise valued the company at $200 million.

Illustration of a cat with an x-ray view of its stomach revealing a dollar sign.

Health tech deals

Petfolk, a veterinary urgent and primary care company, raised a $40 million Series B led by Movendo Capital, CEO Audrey Wystrach tells Axios exclusively.Why it matters: Charlotte, N.C.-based Petfolk&#x27;s raise is the third veterinary deal announced this week.

Exclusive: Petfolk collars $40m Series B

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