Shubham Saroj
Need Medicines? Call Netmeds.
Introduction – Netmeds, India Ki Pharmacy, is brought to you by the Dadha & Company – one of India’s most trusted pharmacies, with over 100 years’ experience in dispensing quality medicines.
At netmeds.com, they help you look after your own health effortlessly as well as take care of loved ones where ever they may reside in India. You can buy and send medicines from any corner of the country – with just a few clicks of the mouse.
Early Days – Netmeds was founded in 2010 by Pradeep Dadha. His family ran a pharmacy business named Dadha & Company in Royapettah, Chennai. This enterprise had several decades of legacy and his father S Mohanchand Dadha is a team member of Sun Pharma, a famous pharmaceutical company in India.
Pradeep Dadha also leads the Pradeep Dadha group of companies and is the chairman of Notch Media. The idea of Netmeds was born when Pradeep was thinking of initiating online sales for his family business. He wanted to utilize the possibility of online stores and came up with Netmeds.
Soon, people started trusting his online platform, and more orders were flowing in. One of the best features of Netmeds was its easily accessible layout. In order to buy a medical product, you just have to follow three simple steps.
The first step is to browse for the medicine you need in the search bar. After finding what you need, you can just add it to your cart. You may also upload the prescription if you are buying a prescribed drug. Netmeds soon started a diagnostic service through which the customers would get expert opinions from verified doctors.
The online pharmacy business was a strange world for customers back in 2010. When many people relied on stores that they personally knew, it was challenging to convince them to buy medicines from an online platform.
The company also had to educate the public about the benefits of making online transactions. Most people refused to think beyond the conventional method of traveling to a pharmacy for their health care needs. Being a country with such a huge population, India has a growing need for medical products.
Any online pharmacy should have sufficient stock to satisfy this necessity. The required drugs had to be collected and delivered in the shortest time possible. The strategy of analyzing prescriptions makes sure that no harmful drugs or self-medication is employed. It also encourages the population to properly consult a doctor before buying medicines.
Marketing Strategy – They market themselves as a trusted platform that has the ability of deliver genuine medicines at your doorstep anywhere in India. They also highlight the fact that the startup is trusted by more than 3 million customers.
They have roped in former Indian cricketer Mahendra Singh Dhoni as their official brand ambassador and he frequently appears in their ads. They have also roped in Kareena Kapoor as their second brand ambassador.
They used 2 popular hastags in their marketing campaigns which are as follows:-
- #IndiaKiPharmacy
- #HarGharMeinMahi
Valuation – Netmeds valuation is supposed to be more than $1 billion after their acquisition by Reliance Industries.
Funding – Netmeds has raised a total of $99 million in funding over 3 rounds. Their latest funding was raised on Sep 1, 2018 from a Series C round. Netmeds is funded by a total of 4 investors. The investors are as follows:-
- Tanncam Investment
- Daun Penh Cambodia Group
- Sistema Asia Capital
- OrbiMed
Revenues & Losses – Netmeds saw its total income decline by 44% to INR 7.7 Cr in FY20 from INR 13.93 Cr in the fiscal year 2018-19 (FY19). The company had a negative net worth of INR 14.2 Cr as per its latest financial filings and a net profit margin of -2,111%.
Even though Netmeds managed to curb its spending in the year, it did not manage to grow the income commensurately. The company’s expenses declined by 9% to INR 172 Cr in FY20 from INR 188 Cr in FY19. This resulted in a huge net loss of INR 164 Cr in the fiscal year ended March 31, 2020.
Acquisitions – Netmeds has acquired a total of 3 organizations. Their acquisitions are as follows:-
- Pluss App
- JustDoc
- KiviHealth
Controversy – Netmeds isn’t involved in any controversy as of now.
Awards – Netmeds have won several awards such as:-
- “Health Tech Start-Up of the Year” at the NDTV Unicorn Awards 2016.
- They were selected as Asia’s Most Promising Brand 2018 by International WCRC International.
- They have been named as the “Best Digital Healthcare Start-up” by ET Now World Health and Wellness Congress in 2019.
- They were also recognized by ET Now World Health and Wellness Congress as the “Digital Healthcare Company of the year” in 2019.
Present Time & Future Goals – In August 2020, Reliance Retail entered the online pharmacy space by acquiring a majority stake Netmeds and its subsidiaries, formally known as Vitalic Health Private Limited, for INR 620 Cr ($83 Million).
The founder of Netmeds said in a statement “It is indeed a proud moment for Netmeds to join Reliance family and work together to make quality healthcare affordable and accessible to every Indian.
With the combined strength of the group’s digital, retail and tech platforms, we will strive to create more value for everyone in the ecosystem, while providing a superior omni channel experience to consumers.”
According to Reliance, Netmeds would enhance Reliance Retail’s ability to provide affordable and extensive health care products and services. The acquisition also broadens Reliance’s digital commerce proposition to fulfill the daily essential needs of consumers.
This acquisition will help both the companies in India and will further expand the reach and scope of Netmeds in the online pharmaceutical industry.
Conclusion – Within health tech, online pharmacies have proven to be the most attractive bet for investors, having attracted funds worth $462 million between 2014-2019, the most among the various sub-segments for India’s health tech startups such as telemedicine and fitness and wellbeing, among others.
We wish Netmeds and Reliance Industries all the best for their future. May they win this online race of delivering medicines and essential products to the ones in need. For more news on startups, stay tuned to StartupTrak.
