Mumbai-based online pharmacy startup PharmEasy has raised around ₹363 crores in series C round led by Eight Roads Ventures India, the proprietary investment arm of Fidelity International Limited (FIL), F-Prime Capital, Fundamentum Advisors, an investment firm backed by Nandan Nilekani and Sanjeev Aggarwal, and San Francisco-based hedge fund Think Investments.
It was earlier reported in July, that PharmEasy was expected to raise around $50 million. Also, the online pharmacy raised ₹40 crores in debt financing from InnoVen Capital, only a few weeks back.
Freshly infused funds will be used to set up technology team in Mumbai and Bengaluru, as it looks to scale both the cities and boosts technology capabilities.
PharmEasy was founded by Dharmil Seth and Dhaval Shah in 2015. It provides a technology platform to offer various healthcare services like medicine delivery, medicine refills & reminders, along with teleconsultation. It further integrates diagnostics centres, in order to help provide a comprehensive medical solution to its clients.
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.”
PharmEasy operates a full stack model, procuring medicines directly from manufacturers and delivers it directly to customers. Within three years, the startup has a presence across more than 1,000 cities, covering over 22,000 pin codes in India. It also claims to receive around 8,000 orders a day.
According to a May 2018 report titled “India E Pharmacy Market Opportunity Outlook 2024”, the ePharmacy market potential is worth over $1 billion with more than 30 startups assisting the growth of this segment in various regions of the country.
Indian ePharma market is expected to grow at a CAGR of over 20% to cross the mark of $3 billion by 2024. There is an opportunity for growth in the healthcare segment overall, making it a lucrative industry for budding startups.
It is also to be noted that the overall Indian healthcare industry is expected to touch $280 billion by 2020, from current $100 billion, according to an IBEF report.