Mumbai based Healthtech startup PharmEasy has entered the Unicorn Club in 2021. The company is valued at $1.5 Billion. Under the banner of its parent company API Holdings, PharmEasy’s success could not come at a better time, when the healthcare industry is being disrupted in a way that favours online companies amidst the ongoing pandemic.
PharmEasy- About The Company
Founded in 2014 by Dharmil Sheth and Dhaval Shah, PharmEasy is a smartphone app that allows users to avail themselves of pharmaceutical services online. This mainly includes hassle-free delivery of medicine and medical equipment to the homes of the user. They also allow labs and medical facilities to serve patients at home by collecting samples for testing.
Customers can upload their prescriptions to the platform, which will then be forwarded to the nearest affiliated drug store or medical facility. These requests can be fulfilled, and the items, whether they be medicine or equipment, can be delivered to the user directly. They deliver to over 98% of the PIN codes in India and are especially popular in cities and urban areas. The company offers quality treatment for affordable rates, and are changing the traditional medical field for the better.
The Business Model
PharmEasy has a website as well as a mobile app, through which customers can upload their prescription and place their orders. They can avail of discounts while ordering via the app. These orders are then transferred to the nearest pharmacy or medical store, selected based on the PIN Code of the user. Due to the regulations imposed by the Government, they do not deliver Schedule H drugs.
Their main income source is by running sponsored ads for pharmaceutical companies. These ads can be seen on the organization’s home page.
PharmEasy- The Growth Curve
Before 2021, PharmEasy was valued at around $700 Million, with its Series D funding round attracting a total investment of $220 Million in November 2019. Its latest round of Series E Funding has managed to raise $323 million, increasing their value to $1.5 Billion, straight to Unicorn status. Prosus Ventures and TPG Growth led this round of investments, with existing backers Temarsk, LGT Lightrock, CDPQ and Eight Rocks also participating.
The company aims to use these funds to expand its supply chain and partners across India. Currently, they work with over 80,000 pharmacies and medical facilities across the county. They aim to boost this up to 120,000 in the next year, and to 200,000 in 2 years. Their parent company, API Holdings has also acquired the smaller rival Medlife, merging the two in a fusion that is unprecedented in scale, in the Indian online pharmaceutical market.
PharmEasy’s rise comes at a crucial point in our time, where e-commerce as a whole is increasing. Due to the Pandemic, many people are opting to purchase goods online. This increase in popularity for online shopping can be leveraged and turned into profit easily. They can also help small, local medical stores and pharmacies to go online and increase their revenue easier. With a win-win situation on both ends, the company seems to be well on the way to success.