PharmEasy, a Mumbai-based online pharmacy startup announced to raise around Rs 363 crores in a series C round from Eight Road Ventures, F-Prime Capitals, Fundamentum Advisors and Think Investments. F-Prime Capital is the investment arm of Fidelity International Limited while Fundamentum Advisors is an investment firm backed by Nandan Nilekani and Sanjeev Aggarwal. Think Investments is a San Francisco-based hedge fund.
Media outlets reported in July that PharmEay was planning to raise $50 million. Earlier this month, the startup also raised Rs 40 crores from InnoVen Capital in debt financing. The fresh capital will be used to hire a team in Bengaluru and Mumbai, boost technology and scale operations in both the cities .
Founded by Dharmil Seth and Dhaval Shah in 2015, PharmEasy provides a tech platform which offers various services like teleconsultation, medicine delivery and diagnostic solutions. It operates on a full stack model and procures medicines directly from manufacturers and sell it to its customers. The startup has grown its presence to more than 1,000 cities covering 22,000 pin codes just within three years of startup. While the team refused to share revenue details, Dhaval says they are seeing a year-on-year revenue growth of 250 to 300 per cent. The month-on-month growth is close to 30 per cent.
Talking about the investment, Dhaval Seth, Co-Founder, PharmEasy, said, “This round of funding reflects the confidence investors have in us and in our ability to change the face of healthcare in the country. This infusion will be utilised to build a larger consumer base, work towards improving our technology base, and put the company on a rapid growth trajectory without compromising on the superlative consumer experience that we have been known for always.”
Major players are active in the health tech industry in India including 1mg, MedPlus, Portea, Zoctr, Lybrate, Tricog, NetMeds, among several others. A few days ago, NetMeds acquired JustDoc.com in a cash and stock transaction. PolicyBazaar also invested Rs 362 crores in its internal health tech arm, DocPrime.
The Indian ePharmacy industry is already worth over $1 billion. More than 30 startups are already disrupting the business while the sector is expected to grow at a CAGR of 20 per cent and cross $3 billion marks by 2024. If we talk about the healthcare industry, the same is touch around $280 billion by 2020, according to an IBEF report.