Hardeep Singh
Do you get irritated when your prescription supplies run out or when you have to wait in large lines at the pharmacy? Pharmeasy, on the other hand, has figured out a way to solve your issue. PharmEasy is a well-known and recognized company that is building a healthcare delivery platform at a rapid pace. It also aids patients in keeping in touch with a variety of local pharmacies. Furthermore, health ecosystems have been powered by data and technology. The company instructs you to upload a prescription, which is then delivered to a local pharmacy.
The company uses a mobile app and web technology to acquire access to the best healthcare products on the market, as well as the most affordable pricing they can provide customers. PharmEasy is one of the most successful healthcare companies in India. PharmEasy currently distributes drugs through over 150 partner vendors in 710 cities, including Delhi, Mumbai, Ahmedabad, Kolkata, Pune, Jaipur, and Bengaluru.
In this business, you must have a high level of trust. The delivery agents obey the guidelines and only collect pharmaceuticals from FDA-approved pharmacies when the prescription is turned over to the pharmacist. The order will thereafter be dispatched. Everything is carefully packaged and delivered to your doorstep. Dharmil Sheth, the company’s founder, and his doctor buddy Dhawal Shah came up with the idea of running a pharmacy. This was the consequence of an idea they had, and it was via this that the company was founded in 2014. Currently, the business has a 98 percent grip over India’s pin codes.
About the Company
PharmEasy is a healthcare delivery platform that aims to improve the efficiency and modernization of India’s healthcare system. Patients can interact with a variety of local pharmaceutical companies and retailers through the platform. Data and technology are at the heart of today’s thriving health and well-being ecosystems, and PharmEasy is harnessing both to improve healthcare in India. PharmEasy is an online pharmacy that delivers medications and medical supplies. PharmEasy has offices in many of India’s major cities. PharmEasy has made purchasing drugs online simple and convenient. Thousands of people receive medications and other medical supplies from the organization every day. Learn more about PharmEasy’s founder, business model, growth, competitors, revenue model, funding, and acquisitions by continuing to read.
Founders and the Founding Stone
Dharmil Sheth and Dr. Dhaval Shah, the creators of PharmEasy, were motivated to create an online pharmacy. PharmEasy was created in 2014 as a consequence of their shared confidence in technology’s potential in the healthcare sector. The organization currently supplies 98 percent of Indian pin codes.
The organization wants to fulfill its long-term objective of bringing everything related to healthcare to clients’ doorsteps. Digitization has become an essential component of the healthcare industry in India. Every step in the sector has been digitized, from organizing a doctor’s appointment to providing results and drugs. PharmEasy and other e-pharmacies deserve a lot of credit for this strategy. As a result of these e-pharmacies, India’s “health commerce business” is expanding at an unparalleled rate.
PharmEasy’s big success is quite motivating. Two “Brainiacs” who share a desire to make the world a better place; a great solution to a national disaster; and an insatiable desire to generate What could possibly prevent such a concoction from raising a commotion? Fashion, accessories, gadgets, residences, and vehicles are all sold online for convenience, but there was no platform that provided required people with healthcare (pharma) delivery services. That’s why Dharmil, one of the company’s co-founders, created PharmEasy, a platform that makes legitimate healthcare services accessible, affordable, and available to everyone.
PharmEasy, like any other huge success, faced challenges that the founders surmounted with wit, resilience, and perseverance far beyond their 30 years of age. “One of the major issues we had was a lack of cooperation from regulators,” Dharmil recalls, adding that the firm regularly collaborates with concerned regulatory agencies at all levels to actively advocate for improvements to existing regulations governing internet platforms in the healthcare industry.
Growth-over the Year’s Progression Made
PharmEasy isn’t the only health-related e-commerce platform currently available. Its primary competitors include Myra Medicines, Ranger Health, BrownPacket, and Hello Heart. On the other hand, PharmEasy remains the industry leader. Ranger Health, which was launched the same year as PharmEasy India and is headquartered in the United States, employs fewer people and has received less finance ($10 million) than PharmEasy.
PharmEasy’s industry-leading success can be attributed to the company’s quick growth since its inception in 2014. Revenues have doubled year over year, and the corporation may end the year with over 450 crores in sales. PharmEasy’s founders, Dharmil Sheth and Dhaval Shah have been essential in the company’s growth throughout the years. The manner in which barriers were recognized and overcome exemplifies this.
Challenges Faced by the Company
Being a success story requires no shortcuts. PharmEasy is an excellent case study for demonstrating this notion. PharmEasy India, which began as a modest online pharmacy and has since grown into a well-known brand, has experienced numerous challenges on its path to success. The success of the corporation, on the other hand, did not occur suddenly. PharmEasy’s journey was unavoidably difficult.
The first of these was the inability to sell products without a legal prescription. Customers who only knew the medications’ names were unable to purchase them. Due to privacy concerns, many consumers were hesitant to enter their prescriptions online into PharmEasy’s mobile app. Aside from that, it was tough to locate PharmEasy’s delivery agents. These difficulties initially limited consumer acquisition.
Since then, the company has grown tremendously after overcoming its initial challenges. PharmEasy’s sales are expected to nearly double to 637 crores in FY2020. During the same time period (FY20), the company lost around 100.7 crores before taxes. The company has received $328.5 million in investment to date. PharmEasy India, on the other hand, just raised $220 million in a capital round spearheaded by Temasek, for a total valuation of about $700 million. PharmEasy is also in talks with SoftBank about raising another $100 million. The net worth of the corporation has now climbed to $700 million.
Financials of the Company
After overcoming its initial obstacles, the company has developed enormously since then. In FY2020, PharmEasy’s revenue is projected to nearly treble to 637 crores. The company lost roughly 100.7 crores before taxes during the same time period (FY20). To date, the company has received $328.5 million in funding. PharmEasy India, on the other hand, recently secured $220 million in a fundraising round led by Temasek, valuing the company at around $700 million. PharmEasy is also in discussions with SoftBank to raise an additional $100 million. The corporation’s net value has already reached $700 million.
PharmEasy generates revenue by providing sponsored results from a variety of pharmaceutical companies. Similar advertisements can be found on the home sites of similar businesses. Advertising is a significant source of revenue for this e-pharmacy, and it is fully utilized. PharmEasy’s profits are boosted even further by attractive discounts. Client commissions on healthcare products and drugs purchased through the site help PharmEasy. The transportation fees imposed on the products also benefit the company. 20crores. In FY20, PharmEasy’s sales nearly doubled to Rs 637 crore. PharmEasy’s losses have more than doubled during that time, rising from Rs 50 crores to Rs 100.7 crores.
Merger and Acquisition
Aknamed, a Bangalore-based healthcare supply chain management company, was PharmEasy’s most recent acquisition. According to regulatory filings, the latter has approved the sale of 975,937 equity shares to API Holdings for Rs 3,155.94 each in order to raise Rs 308 crores (about $42 million) from PharmEasy’s parent firm. Furthermore, the corporation appears to have bought out the assets of the company’s top five promoters, including its co-founders, who had a 50.67 percent stake in the company. PharmEasy’s parent firm, API Holdings Pvt Ltd, will now operate Aknamed as a subsidiary.
On June 26, 2021, PharmEasy purchased a 66.1 percent stake in Thyrocare, a Mumbai-based Indian diagnostics, and preventive care laboratory, for Rs 4,546 crore. The acquirer was Docon Technologies Pvt Ltd, a subsidiary of PharmEasy’s parent company, API Holdings.
Conclusion
The business is quickly growing as the preceding fiscal year, the company’s income more than tripled, going from Rs 340 crore to Rs 637 crore in FY20. Impressive! Dhaval Shah and Dharmil Sheth have played a key part in this expansion through their great leadership and decision-making.
Finally, there isn’t such a thing as a quick path to success. PharmEasy is a fantastic example of this. PharmEasy, which was created by Dharmil Sheth and is now a well-known brand in the online pharmacy industry, has faced numerous challenges along the way to success.
