Derin Oyekan.

    Case study

    How we built PrettyLitter's subscription engine to $40M ARR

    Role
    Head of Growth, employee #1
    Category
    Subscription commerce, pet wellness
    Results
    $100K MRR to $40M ARR in under two years, under 2-month payback, about 4x LTV:CAC
    Outcome
    Acquired by Mars Petcare for about $1.4B

    The situation

    PrettyLitter had a genuinely new product: a cat litter that changes color to flag possible health issues. When I joined, about a year after launch, the business was at $100K MRR, almost entirely one-time purchases. A performance agency ran paid media as a black box.

    The agency wasn't the real problem. The model was. Transactional revenue in a commoditized category is a treadmill: you pay to acquire every order, again and again.

    What I did

    1. 01

      Made the subscription call. I chose to build a subscription business on purpose, even if it slowed top-line growth in the short term.

    2. 02

      Took acquisition back in-house. I pulled strategy out of the black box so every dollar of spend was judged on subscriber economics, not platform ROAS.

    3. 03

      Rebuilt the funnel around subscription conversion. Offers, landing pages, and checkout were redesigned to make subscribing the default path.

    4. 04

      Built the retention layer. Lifecycle, loyalty, and reactivation programs made the unit economics work at scale.

    5. 05

      Turned down easy revenue. I passed on one-time sales that would have inflated the top line but diluted subscriber quality.

    Results

    MetricResult
    ARR$100K MRR to $40M ARR in under two years
    CAC paybackUnder 2 months
    LTV:CACAbout 4x
    ExitAcquired by Mars Petcare for about $1.4B

    What this means for your brand

    If your revenue is mostly first orders, your growth ceiling is set by your CAC. The fix is rarely a better agency. It is a business model and a funnel built around the customers who stay.

    Is one-time revenue capping your growth?

    Related: Fractional CMO for subscription DTC brands