Balderton Capital, which took control of online pet care product supplier MedicAnimal in 2012, is understood to be preparing to auction the company.

Both sales and profit at MedicAnimal have shown rapid growth in recent years thanks to an increase in consumer spending on pet care, which the firm was well-positioned to capitalise on.

The firm's owner, Balderton, a successful European technology business investor, has engaged bankers from Altium Capital to prepare to auction off the firm.

At the moment, prices of between £60 million and £100 million are being mooted as probably; a decent profit on the £10 million Balderton paid along with fellow investment firm Iris Capital just three years ago for a controlling stake.

Ivan Retzignac, MedicAnimal founder and chief executive, said after his firm took over Petmeds: “The average lifetime cost of owning a dog or cat can easily exceed £17,000 and so MedicAnimal is committed to offering the best products at the lowest prices.

"On average our products are 40 per cent cheaper than those sold by vets or high street retailers and, as we scale our business internationally, we can make first class pet care more affordable than ever.”

In terms of who is expected to bid, Pets at Home are a main contender, according to analysts. 

MedicAnimal is based in London and last year was ranked among Deloitte's choice of the Technology Fast 500 EMEA, which awards firms combining “technological innovation, entrepreneurship and rapid growth”.