Pune-based MedsOnWay, which is an online pharmacy store, has raised around ₹4 crore in its seed funding round from RPG Ventures — a venture capital arm of RPG Group.
While the company has closed this round, it is expected to soon enter the market to raise another funding round, reportedly for its expansion plans.
Although the company’s founder says that they will raise new round to expand operations, RPG Ventures says that the funding will be used to expand the company’s operations beyond Pune.
Kunjan Chikhlikar, head of RPG Ventures, believes that a chronic e-pharmacy business has strong fundamentals, higher average order value, high retention and a large expanding market.
MedsOnWay focuses on medicines for chronic illnesses, which it believes is a ₹30,000 crore market with an average order value of ₹1,200. The company was founded by Aniket Bora and Prashanth Pillai in 2015.
It allows users to search for medicines, upload prescriptions and get medicines delivered at their doorstep through a mobile app, which is available on both Android and iOS platforms.
As per the company, it gets around 250 orders per day and has registered 15 percent month-on-month growth in revenues in the past one year. It also claimed to have served over 25,000 customers till date.
In this space, MedsOnWay will be competing against the likes of Gurgaon-based 1mg Technologies, PharmEasy and Netmeds among others. Last month, Netmeds raised ₹90 crore funding round from Tanncam Investment, along with Sistema Asia Fund.