PharmEasy: Startup Story, Company Profile, Founding Team, Mission and Vision, Business Model, and Many More

Introduction:

We can now order our medications from a variety of eCommerce medical stores online and have them delivered online without any problems thanks to the digitalization of the medical sector. PharmEasy is one of the main companies that facilitates simple online medication ordering. The leading online platform for the delivery of healthcare and medications in India is called PharmEasy. It fervently believes that everyone in the nation, regardless of where they live, must have access to cheap healthcare.

With this as their guiding principle, they ensure that their customers receive the highest quality medicines and health items at the lowest prices feasible through their services (medicine delivery and diagnostic testing).

PharmEasy Company Highlights:

About PharmEasy :

PharmEasy’s creator, Dharmil Sheth, and his medical colleague, Dr. Dhaval Shah, had the idea to start an online pharmacy. PharmEasy was founded in 2014 as a result of their shared belief in the future and the promise of technology in the healthcare industry. Currently, roughly 98 percent of Indian pin codes are served by PharmEasy.

As an online pharmacy, PharmEasy provides hassle-free delivery of prescription drugs and other medical supplies. PharmEasy operates in several major Indian cities, including the slums and other impoverished neighborhoods where it is harder to get and more expensive to buy drugs and other necessities. The advantages of digital marketing have made using PharmEasy to buy medications online convenient and simple. Every day, the business provides thousands of consumers with medical supplies and other products to suit their needs and improve their quality of life.

PharmEasy Industry:

The medical/healthcare sector has been expanding in line with the rest of the modern economy, helped along by the spread of the internet and new-age technologies. Internet users are projected to continue growing between 2020 and 25 at a CAGR of 8.78 percent after growing at a CAGR of 18.17 percent from 2015 to 2019. Additionally, from April to September 2020, there was a 71.3 percent rise in e-commerce transactions.

It is fascinating to say the least, that the market for Indian e-pharmacies, which was previously estimated to be about $360 million (Rs 2810 crore), will increase by more than 7X between 2019 and 2023 and reach $2.7 billion (Rs 21,081 crore) by that time.

PharmEasy Founder and Team:

PharmEasy was founded by Dharmil Sheth and Dr. Dhaval Shah. Along with being a co-founder of API Holdings, Dharmil also founded PharmEasy. He founded and still leads Ekagrata. Prior to starting PharmEasy, Sheth also founded 91streets. After receiving his MBBS from Rajiv Gandhi Government Medical College, Dr. Dhaval Shah went on to XLRI Jamshedpur to earn his MBA. At his two colleges, Shah served as general secretary. He finally rose to the position of Consultant at McKinsey & Company before founding API Holdings and PharmEasy.

PharmEasy Startup Story:

The idea to create an online pharmacy was conceived by PharmEasy co-founder Dharmil Sheth and his friend, the physician Dhawal Shah, with the intention of enhancing access to healthcare in India. Getting everything connected to healthcare to customers’ doorsteps was one of the company’s main goals. PharmEasy India was founded in the year 2014. As of right now, the business ships medical supplies to about 98 percent of all pin codes in the nation.

PharmEasy has been successful in achieving its goals of enabling healthcare doorstep delivery across the nation. It has played a significant role in India’s healthcare sector’s recent digitization. Today’s healthcare process in its entirety, from making doctor’s appointments to delivering medications

PharmEasy Mission and Vision:

PharmEasy, India’s top online healthcare aggregator, was founded with the express aim of ensuring that healthcare was available and inexpensive to everyone. To meet their diverse medical demands, PharmEasy assists patients in establishing connections with neighborhood pharmacies and testing facilities. With the greatest savings and quickest turnaround times imaginable, their services guarantee that everyone has access to the best and most genuine health supplies. PharmEasy’s main objective is to make healthcare accessible to everyone.

PharmEasy Name, Tagline, and Logo:

“Take it easy PharmEasy,” says the tagline of the company.

PharmEasy Business Model:

The PharmEasy e-commerce platform continues on pleasantly inform the clients about their services and offers a clear platform as a way of delivering assurance in order to win the trust of the various customers. This platform employs specific methods to guarantee that the equipment and medications they provide are of the highest calibre and are delivered on schedule.

The patient shares their prescription with the company as the first step in the PharmEasy business model. This prescription is examined using a certain set of criteria before being given to a pharmacy close to the customer.

PharmEasy has a collaboration with a number of pharmacies that are licensed, and capable of assessing the prescription, the necessary medications, the appropriate grant, and other benefits associated with the medication. After that, a transport agent will pick up the prescription and the medications and take them to the pharmacy to get them authenticated in accordance with the rules and regulations. If any of these pharmacists have any questions, they will get in touch with you as well, and vice versa. After the order’s verification is complete, it is sent out for transport.

The package will then be picked up by the transport agency, who will quickly deliver it to your door. For the convenience of the clientele, they also provide a variety of payment methods, including Cash on Delivery (COD) and online payment options like Paytm, Google Pay, Amazon Pay, and others. Patients can quickly and easily place orders using their website and mobile applications.

On orders that are collected through the app, the PharmEasy business model offers a discount of about 20%. This platform makes sure that it complies with all rules established by the government regarding e-pharmacies and medications.

PharmEasy has created a corporate success story that propelled the company up the ladder by employing a wholly customer-centric approach. However, they encountered a number of obstacles along the road. The PharmEasy business model has several restrictions as well. There are a total of four options for the PharmEasy business model to generate revenue.

• Commissions are received from various pharmacies and suppliers of healthcare supplies.
• Via delivery charges for medical and pharmaceutical supplies.
• Advertisement space is sold to pharmaceutical and healthcare companies.
• Lab test sales.

PharmEasy Revenue Model:

When it comes to analyzing the money made, advertising represents the PharmEasy company’s main revenue stream. On the “Home” page, the various PharmEasy elements come together. Alternatively, you might look for relevant results from various pharmaceutical businesses. Some of these adverts may be from recognizable sources like telecom firms, diagnostic facilities, or electronic wallets. The sale of medical and exercise equipment is another source of revenue for the business. Additionally, it contributes significantly to the organization’s revenue generation.

This business model is used by the majority of Internet portal-based e-commerce businesses. The parent organization has already decided how much money each person will receive in fees. The most recent market circumstances are considered while determining this fee. You must also keep spending under control when there is a rush to earn more money. The things on the website must be reasonably priced. Finding the ideal balance between these two factors is difficult, but it is also crucial.

The company eventually overcame its early difficulties and subsequently experienced phenomenal growth. PharmEasy almost doubled its revenue to 637 crores in FY2020. The company’s pre-tax losses for the same time frame (FY20) were roughly 100.7 crores. The company has gotten $328.5 million in investment thus far. In reality, PharmEasy India raised $220 million in its most recent fundraising round, which was spearheaded by Temasek, with a final valuation of over $700 million. In addition, PharmEasy is in discussions with SoftBank to raise an additional $100 million. The corporation currently has a staggering $700 million in net worth.

PharmEasy Products and Services:

Creator of an online drug distribution system with the goal of totally digitizing the pharmaceutical supply chain. The company’s app allows customers to purchase medications and healthcare items, as well as connect with nearby pharmacies and diagnostic facilities to meet their vast medical needs. This enables patients to obtain readily available, reasonably priced healthcare services.

PharmEasy Funding and Investors:

PharmEasy raised $5 million in a Series A transaction in December 2015. Approximately one lac individuals were utilising an app every 45 days at the time this was happening. At the time, a ticket cost Rs 1500 on average. Several e-pharmacies, including PharmEasy, offered significant discounts to entice customers to buy drugs online during this initial period.

By July 2016, Pharm Easy had grown to 7 cities, and by 2017, it had reached 20 cities. In order to achieve rapid expansion, the company invested $16 million in series B fundraising in March 2017. Following this round of fundraising, PharmEasy backed. In 2017, their earnings tripled. However, the corporations had to deal with higher losses because of the increasing revenues.

PharmEasy again raised a massive $50 million in a series C investment in September of last year. With this money, they prepared themselves to expand farther. By raising the revenue-to-losses ratio, the corporation aimed to improve unit economics. The business had taken measures by the year 2019 to offer associated services in addition to regular pharmaceutical distribution.

Utilizing its current clientele, the company began offering healthcare items and home lab tests. At the moment, PharmEasy offers three significant services. These include the sale of healthcare supplies, home lab testing, and the sale of prescription medications online.

$204 million was invested in the primary round of the $354 million investment round, which was led by Amansa Capital, Steadview Capital, OrbiMed, Abu Dhabi’s sovereign wealth fund ADQ, and other investors. PharmEasy raised $150 million in its second round of fundraising from the partial exits of a number of early-stage investors and angel investors, including Fundamentum, Eight Roads Ventures, Bessemer Venture Partners, and others. PharmEasy has revealed that more than 20 senior employees, five founders, and some new investors have chosen secondary shares at a valuation of $5.6 billion. The company is preparing to submit its Draft Red Herring Prospectus (DRHP). As of February 2022, the corporation has a worth of $5.4 billion. The company has not made a decision on its IPO round and will not fix its price until receiving SEBI’s approval.

Prior to this round, the company raised a whopping $500 million via its Series F funding round, which was led by Arokiaswamy Velumani, valuing the company at $1.8 billion in June 2021. This round saw the company raise a further $354 million in funding in its Pre-IPO round of funding, split into 2 rounds.

Out of the 43 investors it has, 12 are main investors in PharmEasy. Among the principal investors in PharmEasy are VestinWolf Capital, Trifecta Capital, Steadview Capital, Amansa Capital, IIFL Finance, and others.

The company’s sales nearly quadrupled from Rs 340 crore in the previous fiscal year to about Rs 737 crore in FY20. Impressive! Dhaval Shah and Dharmil Sheth, who exhibit exceptional leadership and sound judgement, are significantly contributing to this growth. According to the financial reports for the fiscal year 2021, PharmEasy has achieved yet another record of growth, increasing its income by 220 percent to Rs 2,360 cr in FY21 from Rs 737.4 cr in FY20.

PharmEasy Employees:

There are 1000 workers at Pharmeasy. Drug Stores & Pharmacies, Retail is the sector in which Pharmeasy operates.

PharmEasy Challenges Faced:

A success story cannot be achieved quickly. The case study of PharmEasy is excellent for demonstrating this idea. PharmEasy India, which began as an unknown company in the online pharmacy industry and developed into an established brand, overcame several challenges along the way to success. However, the business did not become successful right away. PharmEasy’s journey had its share of obstacles.

The first one was the inability to send out products without a legitimate prescription. Customers who only understood the names of medicines were insufficient to receive the merchandise. Due to privacy concerns, many users refrained from online uploading their prescriptions to the PharmEasy mobile app. In addition to this obstacle, it was challenging to find the locations of PharmEasy’s delivery personnel. Initial consumer acquisition was slowed by these difficulties. But this is no longer the case.

PharmEasy hasn’t had a problem finding new consumers ever since it overcame its early difficulties. In reality, the company’s high user retention percentage is evidence of its expertise in retaining clients. Faith and trust are essential for PharmEasy’s customer acquisition. PharmEasy has experienced remarkable development by taking advantage of the symbiotic relationship between the value the firm provides its clients and the value users derive from using those services.

PharmEasy Acquisitions:

Thyrocare, Aknamed, and Medlife are the three significant businesses that PharmEasy has currently bought. One of PharmEasy’s competitors was Medlife. This company was acquired at a time when the Indian e-commerce market was consolidating. PharmEasy purchased Medlife in 2020.

At the same time, Reliance bought a sizable portion of Netmeds. Tata also acquired a sizeable share in 1mg during the same year. In 2019, Medlife generated revenues of Rs 363 crore and losses of Rs 404 crore. This low revenue ratio was a major factor in Medlife’s decision to merge with PharmEasy, which had higher revenue-to-loss ratios.

The largest diagnostic testing facility in India is called Thyrocare. In order to increase its footprint in the lab testing market, PharmEasy bought Thyrocare. This indicates that there are more patient healthcare journey touchpoints for start-up institutions. In addition to these two well-known brands, PharmEasy also bought Aknamed.

A healthcare company is making an effort to improve India’s supply chain. In 2021, this merger took place. You can anticipate it to grow into a big patient touchpoint if you consider PharmEasy’s recent acquisitions and the way they have extended their business.

PharmEasy Growth:

PharmEasy is not the only e-commerce health platform accessible at the moment. Myra Medicines, Ranger Health, BrownPacket, and Hello Heart are some of its main rivals. But PharmEasy continues to lead its rivals in terms of popularity. Despite having its headquarters in the United States and being founded the same year as PharmEasy India, Ranger Health now employs fewer people and has gotten less funding ($10 million) than PharmEasy.

PharmEasy has outperformed its competitors in its industry since it has had rapid growth since its founding in 2014. The company has a fourfold increase in growth year over year, which translates into a potential revenue of close to 450 crores. The founders of PharmEasy, Dharmil Sheth and Dhaval Shah, have been instrumental in the company’s expansion over the years. This is evident from the way problems were located and solved.

A success story cannot be achieved quickly. The case study of PharmEasy is excellent for demonstrating this idea. PharmEasy India, which began as an unknown company in the online pharmacy industry and developed into an established brand, overcame several challenges along the way to success. However, the business did not become successful right away. PharmEasy’s journey had its share of obstacles.

The first one was the inability to send out products without a legitimate prescription. Customers who only understood the names of medicines were insufficient to receive the merchandise. Due to privacy concerns, many users refrained from online uploading their prescriptions to the PharmEasy mobile app. In addition to this obstacle, it was challenging to find the locations of PharmEasy’s delivery personnel. Initial consumer acquisition was slowed by these difficulties. But this is no longer the case.

PharmEasy hasn’t had a problem finding new consumers ever since it overcame its early difficulties. In reality, the company’s high user retention percentage is evidence of its expertise in retaining clients. Faith and trust are essential for PharmEasy’s customer acquisition. PharmEasy has experienced remarkable development by taking advantage of the symbiotic relationship between the value the firm provides its clients and the value users derive from using those services.

PharmEasy Partners:

To do this, PharmEasy gives its users the option to keep in touch with a number of nearby pharmacies. It is currently one of the greatest healthcare companies and e-commerce platforms in the nation. PharmEasy collaborates with more than 150 different vendor partners to supply medications to 710 various cities, including Mumbai, Delhi, Kolkata, Ahmedabad, Bengaluru, Pune, and Jaipur. The ownership structure of Pharmeasy is as follows:

• Others – 39.1%
• Prosus – 12%
• Temasek – 10.8%
• Surbhi Singh and Universal – 6.7%
• TPG Growth – 6.7%
• Evermed Holdings – 5.9%
• Velumani – 4.5%
• caisse de dépôt et placement du québec – 4.1%
• Lightstone – 3.9%
• TIMF Holdings – 3.1%
• Bessemer Venture Partners – 3.1%

PharmEasyCompetitors:

The company’s top competitors are –

• Tata 1Mg
• Ranger Health
• Medibuddy
• Myra Medicines
• Hello Heart
• BrownPacket and more.

Along with their physical locations, other hospitals and companies like Apollo Pharmacy are attempting to increase overall sales through their online platforms. The majority of the businesses featured here are working to improve their medication distribution method online. But most of them are lagging PharmEasy.

PharmEasy Awards and Achievements:

At the 17th Indian Business Leader Awards, presented by CNBC-TV18, PharmEasy is named Young Turk of the Year.

PharmEasy Future Plan:

PharmEasy had earlier decided to raise approximately Rs 6,250 cr through a new share offering toward the end of 2021. As of February 2022, the pharmacy unicorn is contemplating this IPO round. The healthcare unicorn is currently reconsidering the timing of the launch of its IPO due to market volatility.

FAQs About PharmEasy:

What does PharmEasy do?

PharmEasy is a consumer healthcare “super app” that meets customers’ healthcare needs by giving them on-demand, home-delivered access to a variety of prescription, over-the-counter, and other consumer healthcare products, as well as extensive diagnostic test services and teleconsultations.

When was PharmEasy founded?

2015

Who is the founder of PharmEasy Corporation?

PharmEasy’s parent company is API Holdings Private Limited. PharmEasy was founded by Dhaval Shah and Dharmil Sheth.

Who is the CEO of PharmEasy Corporation?

Dharmil Sheth and Dhaval Shah are the founder and CEO of the company.

Who are the main competitors of PharmEasy?

The top 6 PharmEasy competitors are SastaSundar, 1mg, Medlife International, Netmeds Marketplace, Apollo 247, and eVital.YZ.

Conclusion:

In the worlds of e-pharmacy and healthcare, PharmEasy has excelled. They have helped to establish a new wave of confidence and trust in e-commerce platforms by offering high-quality pharmaceuticals at reasonable prices and streamlining health exams. Internet and smartphone usage is on the rise, which has created the ideal environment for e-commerce business expansion. And this gives PharmEasy a very advantageous position, particularly after the pandemic.

They have an easy-to-use website and mobile app that makes lead conversion simple. Due to the removal of intermediaries who constantly take a commission, medicines are now more affordable. Finally, they produce interesting health materials and offer a flexible payment system. These are all elements that have improved PharmEasy’s visibility and brand value. PharmEasy is an all-encompassing company that offers a variety of healthcare facilities, and this offers a special platform for the company to grow and broaden its demography. Leverage is increased since the healthcare industry is booming.