How Do You Build The Ultimate Pet Health Platform?

An interview with Baris Ozaydinli, Founder and CEO of Scooch, about building an AI-powered personalized pet health platform

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🚀 Welcome to this week’s SCALE founder interview!

In this week's edition, we're thrilled to feature an exclusive interview with Baris Ozaydinli! As a founder with multiple successful exits, Baris shares invaluable insights into his experience building Scooch. Dive in to discover how Scooch is revolutionizing pet care!

🐶 Company overview: Scooch is developing an AI-powered personalised pet health platform that combines supplements, telehealth, insurance, and digital tools to help pet owners take better care of their furry friends.

🫅 Founder: Baris Ozaydinli

🌎️ HQ Location: London, United Kingdom

💻️ Website: https://scooch.pet/

What we cover in this edition:

🏃 How Did They Get Started?

Baris Ozaydinli is a serial entrepreneur whose  journey to founding Scooch began after a successful career spanning consumer goods, marketing, and technology.

After selling his previous startup (an AI-powered fitness coaching app) during the pandemic, Baris was looking for his next challenge.

The inspiration for Scooch came from an unexpected source - his family's insistence on getting a dog during lockdown. As a first-time pet owner, Baris quickly realised there were significant gaps in the pet care industry:

  1. Taking care of a pet involves a lot of guesswork, as they can't directly communicate their needs

  2. Many young, busy professionals were becoming pet owners for the first time and struggling to provide proper care

  3. The veterinary industry felt outdated and reactive, not built for today's digital-first consumers

“Connecting the dots, I realised that I could utilise my background in product & health to build something that is truly meaningful”

Baris on founder-market fit

This was the origin story for Scooch: a personalised petcare platform.

With this initial concept in mind, Baris approached Founders Factory, who had invested in his previous startup. Their existing relationship (from his previous venture) and Baris' track record allowed him to secure pre-seed funding to explore the idea further.

🐶 How Did They Find Product-Market Fit?

Finding product-market fit was an iterative process for Scooch across their physical supplements and software products

"We had very limited time to launch the business. So we had to really focus on what people will be willing to pay for as the initial minimum viable product."

Baris on building an MVP

The initial MVP consisted of:

  1. A basic website with an online quiz to collect data on their customer’s pets

  2. A health score generator 

  3. A subscription service for pet health supplements

This allowed Scooch to start collecting data and feedback from customers while generating revenue.

As they gathered more insights, Scooch iterated on their product offerings:

Supplement product:

  1. Day-1 MVP: White label products from trusted suppliers

  2. Scooch today: Develop in-house formulations based on customer feedback and historic data collected

Digital product:

  • Day-1 MVP: Simple online form with rules-based health score generator

  • Today: 

    1. Web App: They evolved the basic quiz into a more comprehensive web app, adding features like 24/7 telehealth veterinary consultations.

    2. AI Integration: Recognizing the potential of AI, Scooch integrated AI-powered features into their app, including a chat interface for triaging pet health issues.

    3. Mobile App: Based on the success of their web app, Scooch is now developing mobile apps to improve engagement and offer better tracking and notifications.

    4. Insurance Integration: Identifying a gap in their offering, Scooch is preparing to launch pet insurance products to provide more comprehensive care.

The importance of continuous feedback in B2C: 

Baris highlighted the importance of developing a clear communication channel with customers for B2C businesses across as many channels as possible including a dedicated customer service rep from day-1, Google Reviews, Trust Pilot, etc. 

“The good and bad thing about being B2C is that people are very vocal when they are unhappy. You have to be able to collect this information from day-1”

Baris on collecting customer feedback

Going forward maintaining this feedback loop will be key for Scooch: 

"We started seeing some data that shows people who engage with the app and use the AI features, have significantly more retention and Lifetime Value. Our AI co-pilot is named after my dog Rio and we have exciting plans for it in the near future."

Baris on learnings from customer data

🤑 How Do They Make Money?

Scooch primarily operates a subscription-based model, with approximately 85% of revenue coming from recurring subscriptions.

The company offers customers different tiers:

  1. Scooch Health (Digital Only): Provides access to the app, health score, AI triage, 24/7 video veterinary consultations, and soon, embedded insurance.

  2. Scooch Premium: Includes Scooch Health features plus physical products delivered monthly based on the pet's health needs (e.g. supplements, dental care products).

Why use a subscription model: 

“We wanted to build a long-term relationship with the customer to build a stronger LTV profile” 

Baris on building customer relationships

15% of revenue comes from the physical supplements business: To improve unit economics, Scooch views its physical products as "billboard advertising" to upsell customers to higher-value subscriptions. They also sell on Amazon as an additional customer acquisition channel.

Future plans include expanding to a B2B2C model by partnering with breeders, shelters, and veterinary clinics, as well as potentially exploring omnichannel distribution.

The north star metric for Scooch: LTV/CAC

"Being a D2C business, unit economics are key for success. This means that the CAC vs LTV profile is key."

Baris on LTV/CAC

🪝 How Does Baris Approach Marketing in B2C?

Scooch's marketing strategy is a testament to the evolving landscape of direct-to-consumer businesses. With the increasing costs of digital advertising and changes in platforms like Apple's iOS, Scooch has adopted a multi-faceted approach:

"Marketing requires constant management. It's changes daily and we need to make sure that we are active across all channels” 

Key elements of Scooch's marketing strategy include:

  1. Performance Marketing: They continue to leverage platforms like Meta, Google, TikTok, and Amazon, but with a keen eye on ROI.

  2. Affiliate and Influencer Partnerships: Scooch works with relevant partners and influencers on a performance basis i.e., CPC

  3. Customer Referrals: A soon-to-launch referral program aims to capitalize on word-of-mouth marketing.

  4. SEO and Content Marketing: Increasing investment in organic content to capture search traffic related to pet health issues.

  5. Amazon as an Acquisition Channel: Beyond just sales, Scooch views Amazon as a cost-effective customer acquisition funnel.

  6. Physical Products as Marketing Tools: Baris sees Scooch's supplements as "billboard advertising" in customers' homes, using QR codes to drive app downloads and subscription sign-ups.

🧑‍🤝‍🧑 How Did They Build Their Team?

Baris took a strategic approach to building the Scooch team, making targeted hires based on immediate needs rather than over hiring - he did not want to go on a hiring spree

Key early hires included:

  1. The operator: a veterinary-trained operator with startup experience to help shape product formulations

  2. The swiss-army knife: a young, versatile hire with founder and corporate experience to handle growth and marketing

  3. The builder: an experienced product director to shape the digital platform

  4. The architect: A seasoned CTO with founder experience to build the technology foundation

Baris emphasizes the importance of balancing technical and non-technical roles:

"If I wasn't an experienced founder who had built similar businesses and worked in similar spaces in the past, I probably would need to have a few more hires in the non-technical side of things to balance the scales."

Currently, Scooch has 6 full-time employees, with 4 focused on technology and product development.

🎤 SCALE ADVICE COLUMN

Validate your idea: "Do your homework and really focus on the problem you're trying to solve. Make sure you speak to your customers from day-1”

Ensure founder-problem fit: "What foundational skills or experiences or insights do you have that will create unfair advantage to you, that will enable investors to be able to back you, key hires to come, and how do you actually make a difference in the business in the first place."

Build a complementary founding team: "If you have a young, founding team, all of the players need to be kind of very important for the business but also be complementary to each other."

Align on expectations early: "Getting everything into a shareholders agreement where there's vesting and incentives are set equally or similarly is very important."

Focus on scalability and profitability: "Especially in the consumer space you need to think about how you will have a scalable business and if you can actually make money from the early stages."

💹 What's Next?

Over the next 6-12 months, Scooch has several key objectives:

  1. Close their next funding round

  2. Launch a mobile app with new AI-enabled features

  3. Roll out pet insurance offerings

  4. Introduce new physical products to complement their portfolio

  5. Make strategic hires, including a fractional CFO and junior roles in operations, tech, marketing, and product

While the company plans to focus on the UK market for the next year, they are laying the groundwork for future geographic expansion.

Baris remains focused on building a lean, efficient operation:

"I believe in today's world, we could build very significant companies with 10 people or 20 people, and there are examples of companies who have scaled and built businesses like WhatsApp or Instagram into billion-dollar operations with tiny teams."

Baris on what comes next

If you are an investor or would like to work with Scooch, get in touch at [email protected].

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