Wag Labs Inc., one of SoftBank Group Corp.'s high-profile venture investments, is seeking to sell itself for a knock-down price after growth stalled, according to two people familiar with the situation.
The Los Angeles-based pet-care startup is in discussions with several potential strategic buyers. But Wag's business is losing ground to rival Rover.com, so the Wag price tag will likely fall short of once lofty expectations, the people said. They asked not to be identified discussing private negotiations.
SoftBank invested $300 million in Wag in January 2018 via its $100 billion Vision Fund. The deal drew attention because it valued the startup at about $650 million, even though the business was relatively small and had been criticized for occasionally losing pets.