PharmEasy - Ordering Medicines Online Has Become Child's Play

Purbalee Dutta Purbalee Dutta
Feb 01, 2021 7 min read
PharmEasy - Ordering Medicines Online Has Become Child's Play

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.

PharmEasy has developed a health care delivery platform to simplify and modernize the health care setup in India. The platform helps patients to stay connected with various local pharmacy stores and outlets. Data and technology are the driving factors behind a robust health and well-being ecosystem today. And PharmEasy is leveraging both of them to strengthen the healthcare in India.

What does PharmEasy do? - PharmEasy serves as an online pharmacy and handles the hassle-free delivery of medicines and other medical equipment. PharmEasy operates in several major cities of India. Shopping for medicines online has become convenient and easy through PharmEasy. The company delivers goods to thousands of customers every day. Read on to find out more about PharmEasy's success story, founder, business model, growth, competitors, revenue model, funding details, and acquisitions.

PharmEasy - Company Highlights

Startup Name PharmEasy
Headquarters Lal Bahadur Shastri Marg, Mumbai, India
Founder/Owner Dharmil Sheth, Dhaval Shah
Founded 2014
Revenue/Turnover Rs 637 crore (FY20)
Net Worth/Valuation $700 Million (Nov 2019)
Total Funding $328.5 million
Parent Organization 91streets Media Technologies/API Holdings Private Limited

Discover the Journey of PharmEasy:

PharmEasy - About And How It Works?
PharmEasy - Founder/Owner and Team
CCI Approves PharmEasy’s Merger With Medlife
PharmEasy - Startup Story
PharmEasy - Business Model
PharmEasy - Revenue Model
PharmEasy - Revenue/Turnover
PharmEasy - Funding
PharmEasy - Challenges Faced
PharmEasy - Customer Acquisition
PharmEasy - Competitors
PharmEasy - Growth
PharmEasy - FAQs

PharmEasy - About And How It Works?

Pharmacy is an e-commerce platform for the purchase of medicines and other healthcare-related equipment. You upload a prescription on PharmEasy which is then sent to a drugstore in your vicinity. The company uses a mobile app and web technology to offer the best-quality health care products to customers at affordable rates.

You might be thinking, "Ah! discounted products, they would be of cheap quality for sure." But no, discount has nothing to do with compromise in quality. Pharmacy provides you with the top-notch products that you generally find in reputed pharmacies and medical stores.

Once PharmEasy sends your medical prescription to the drugstore, a delivery agent collects the medicines from the drugstore while adhering to all sorts of precautions and guidelines. Your order is then packaged and is delivered to your doorstep. Visit PharmEasy's website to comprehend the company's liabilities.

PharmEasy Logo

PharmEasy - Founder/ Owner And Team

Dharmil Sheth and Dhaval Shah are the founders of PharmEasy

PharmEasy Owner, Founders
Dharmil Sheth and Dhaval Shah

Dhaval Shah and Saumil Parekh are the two key executives at the company. The team behind PharmEasy has set its sight on becoming India's best health care delivery venture. The focus at the moment is digization to the maximum possible extent. PharmEasy is a private company that is adding new employees to its taskforce every other day.

CCI Approves PharmEasy’s Merger With Medlife

On September 22, 2020, The Competition Commission of India approved the merger of Medlife (Online Pharmacy) with PharmEasy. This action is termed as the First Major Consolidation in this sector after the netry of Amazon and Reliance.

According to this deal, PharmEasy's Parent Entity will acquire 100% equity of Medlife and the promoters of Medlife will get 19.95% stake in the entity

PharmEasy - Startup Story

Dharmil Sheth, the founder of PharmEasy, and his doctor pal Dhawal Shah came up with the idea of building an online pharmacy. And this is how PharmEasy came into existence in the year 2014. Presently, the company delivers to nearly 98% of the Indian pin codes.

The company wanted to achieve the mission of doorstep delivery of everything related to healthcare. And it has now successfully accomplished this objective. Digitization has become an integral component of India's healthcare industry. Be it scheduling a doctor's appointment or delivery of reports and medicines, every step in the industry has been digitized. And a major chunk of the credit goes to e-pharmacies like PharmEasy. The "health commerce industry" in India is growing at unprecedented rates courtesy of these e-pharmacies.

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PharmEasy - Business Model

PharmEasy delivers medicines and other medical accessories across Indian towns and cities. It is like Grofers for medicine. The pin codes maintained by PharmEasy are used to identify pharmacies closest to the customers. Customers can either access PharmEasy's website or use its mobile app to order items. They are entitled to discounts of up to 20% if they order using the mobile app.

Due to various rules and regulations set by the Indian government, the company doesn't deliver Schedule H drugs. Why do people abstain from e-pharmacies? They aren't sure of where the medicines come from. PharmEasy is dispelling this notion for good.

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PharmEasy - Revenue Model

PharmEasy earns by displaying the sponsored results of various pharmaceutical entities. These kinds of advertisements are found on the homepage of such organizations. Advertising is a major source of revenue and this e-pharmacy leverages it to the hilt. Attractive discounts also contribute to PharmEasy's revenue.  

PharmEasy - Revenue/Turnover

PharmEasy nearly doubled its revenue in FY20 to Rs 637 crore.

PharmEasy's losses before tax for the period is around Rs 100.7 crore

PharmEasy - Funding

PharmEasy has received $328.5 million in funding to date.  PharmEasy raised $220 million in the latest funding round led by Temasek at a valuation of around $700 million.

The company is also in talks with SoftBank to raise $100 million.

Date Series Amount Investors
March 2016 Series A $5 Million Bessemer Venture Partners
March 2017 Series B $18 Million Bessemer Venture Partners
2018 Series C $50 million Eight Roads Ventures India, F-Prime Capital, and others
July 2019 Equity $100 million Canadian pension fund CDPQ, and LGT.
November 2019 Series D $220 million Temasek

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PharmEasy - Challenges Faced

The company started its journey in the year 2014 and has now become a major player in the online pharmacy segment. However, PharmEasy didn't witness overnight success. Challenges are inevitable. And the e-pharmacy also had its share of problems. It was difficult for PharmEasy to deliver products without a prescription.

Knowing the medicines by their names wasn't enough. A valid prescription was compulsory for supplying the products. Many didn't want to upload their prescriptions fearing consequences. Location tracking back then was difficult for the PharmEasy's delivery agents. Not anymore, though.

The company eventually overcame the challenges thrown at it and has grown tremendously since its inception in 2014.

PharmEasy - Customer Acquisition

Customer acquisition of a company totally depends upon trust and faith. It's a symbiotic relationship of how much the company is giving to its customers and how those users are benefitting in return.

Acquiring new users has not been problematic for PharmEasy ever since it overcame the initial hiccups and challenges. A solid user-retention rate has proved PharmEasy's expertise in keeping customers satisfied.

PharmEasy - Competitors

The company's top competitors are Ranger Health, Myra Medicines, Hello Heart, and BrownPacket. These companies are building theirempire just like PharmEasy. But PharmEasy is ahead of its competitors. Ranger Health is a company which was founded in the same year as PharmEasy and is headquartered in the US. The company has fewer employees than PharmEasy. It has received $10 million in funding which is lower than what PharmEasy has arranged.

PharmEasy - Growth

The company is witnessing massive growth. It's growing at 4x year-on-year which translates into the possibility of generating a revenue of INR 450 crores. Impressive! Dhaval Shah and Dharmil Sheth are playing a major role in this growth through excellent leadership and superior decision-making.

Finally, there is no shortcut to success. And PharmEasy is a case in point. From being an unknown candidate in the online pharmacy space to becoming an established brand, Dharmil Sheth-founded PharmEasy has conquered varying obstacles to reach the zenith of success.

PharmEasy - FAQs

Who is PharmEasy Owner?

API Holdings Private Limited is the Parent Organisation of PharmEasy. Dhaval Shah and Dharmil Sheth are Founders of PharmEasy.

How much is PharmEasy Revenue and Profit?

PharmEasy nearly doubled its revenue in FY20 to Rs 637 crore. PharmEasy's losses before tax for the period is around Rs 100.7 crore

How PharmEasy works?

Customers can upload a prescription on PharmEasy, which is then sent to a drugstore in your vicinity. The package is delivered to your doorstep within the stipulated time.

How much is PharmEasy Net worth?

$700 Million

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