PharmEasy Success Story – How it Made Ordering Medicines Easy

Authors: Purbalee Dutta, Anik Banerjee
Date: July 20, 2022 — 15 min read
Company Profile: An initiative by StartupTalky to publish verified information on startups and organizations. This content has been approved by PharmEasy.

PharmEasy: Revolutionizing the Medicine Industry

The pharmaceutical industry has long been characterized by its disorganized nature. While traditional wholesale and retail markets have served customers adequately, the advent of digitalization has transformed the landscape. Enter PharmEasy, a major player that has simplified the online ordering of medicines.

Simplifying Healthcare Delivery

PharmEasy has created a healthcare delivery platform aimed at modernizing India’s healthcare system. By connecting patients with local pharmacies through a robust technology-driven ecosystem, PharmEasy ensures seamless access to medicines and medical equipment. Their platform leverages data and technology to enhance healthcare services across India.

What Does PharmEasy Do?

PharmEasy functions as an online pharmacy, facilitating the hassle-free delivery of medicines and medical equipment across numerous Indian cities. By uploading a prescription on their app or website, customers can have their orders processed and delivered from local pharmacies. This innovative approach has made shopping for medicines online convenient and reliable.

Company Highlights

• Startup Name: PharmEasy
• Headquarters: Lal Bahadur Shastri Marg, Mumbai, India
• Founders: Dharmil Sheth, Dr. Dhaval Shah
• Founded: 2014
• Revenue: $315.99 million (Rs 2360 crore) in FY21
• Valuation: $5.4 Billion (February 2022)
• Total Funding: $1.60 billion (February 2022)
• Parent Organization: 91streets Media Technologies/API Holdings Private Limited
• Website: pharmeasy.in

How PharmEasy Works

PharmEasy allows users to purchase medicines and healthcare equipment online. By uploading a prescription, it is sent to a nearby drugstore, where a delivery agent collects the items, packages them, and delivers them to the customer’s doorstep, adhering to all safety guidelines.

Industry Growth

The healthcare industry has seen significant growth, driven by internet penetration and new technologies. The Indian e-pharmacy market, in particular, is expected to grow from $360 million in 2019 to $2.7 billion by 2023, at a CAGR of 65.5%.

Founders and Team

• Dharmil Sheth: Co-founder of PharmEasy and API Holdings, and founder-president of Ekagrata. He has an MBA in Marketing from IIM Ghaziabad and has worked with Techno Gravity Solutions and MakeMyTrip.com.
• Dr. Dhaval Shah: An MBBS from Rajiv Gandhi Government Medical College with an MBA from XLRI Jamshedpur. He has been a consultant at McKinsey & Company.

Startup Story

Dharmil Sheth and Dr. Dhaval Shah founded PharmEasy in 2014, recognizing the potential of technology in healthcare. Today, PharmEasy services nearly 98% of Indian pin codes, fulfilling its mission of doorstep delivery of healthcare essentials.

Business Model

PharmEasy operates as an e-pharmacy, maintaining a three-way chain between buyers, suppliers, and distribution networks. Customers can order via the website or mobile app, benefiting from discounts and streamlined service.

Revenue Model

PharmEasy’s revenue streams include sponsored listings from pharmaceutical entities, advertising, commissions on sales, and delivery charges.

Funding and Investors

PharmEasy has raised $1.60 billion to date, with significant investments from VestinWolf Capital Management, Amansa Capital, and others. The company is valued at $5.4 billion as of February 2022.

ESOPs and Acquisitions

PharmEasy has rewarded its co-founders and employees with ESOPs and has expanded its ESOP pool for eligible employees. The company has acquired Aknamed, Thyrocare, and Medlife, strengthening its market position.

Challenges and Growth

PharmEasy faced challenges in its early days, such as prescription verification and location tracking. However, it has overcome these hurdles, achieving significant growth and expanding its customer base.

Future Plans

PharmEasy plans to raise Rs 6,250 crores through a fresh issue of shares, although market volatility has prompted a reconsideration of the IPO timing.

Conclusion

From a nascent startup to a leading online pharmacy, PharmEasy’s journey underscores the importance of perseverance, innovation, and customer trust. By leveraging technology and data, PharmEasy continues to revolutionize healthcare delivery in India.