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Ahmedabad-based chain of generic medicines pharmacy, Medkart informed that the company has raised ₹40 crore in Series A round of fundraising. This puts the company’s post-money valuation at ₹140 crore.
The funding round was co-led by Alkemi Growth Capital and Insitor Partners with participation from angel investors including Prashant Poddar and other professionals from UAE and ex-CEO of IIFL Asset Management. The investors collectively will hold 28 per cent in the company, while the promoter holding will be 72 per cent post transaction.
Founded in 2014 by Ankur Agarwal and Parsharan Chari, Medkart has recorded a turnover of ₹25 crore for the fiscal 2021. Medkart offers generic versions of the drugs thereby making medicines affordable for the people.
Reduced cost
It reduces the cost of medicines by up to 85 per cent. Medkart has doubled its store strength during the Covid-19 era from 34 in a pre-pandemic era to 75 stores now, mostly across Gujarat and Rajasthan.
“The need for fundraise was felt to further expand our reach in Gujarat and Rajasthan. We look to increase our store strength to 250 by end of 2023,” said Ankur Agarwal, Co-founder, Medkart.
Through its offering of generic alternative medicines, the company claims to have saved over ₹200 crore for its customers and enjoys a loyal customer base of about 600,000 chronic patients.
“We want to take our stores where the customers are. To increase our store count we will offer franchisees to the new entrepreneurs or fresh pharmacy graduates,” Agarwal said adding that against the initial investment is ₹10 lakh per store. He said the earning potential is immense considering the growing awareness about the generic versions of the drugs which are authentic, affordable and effective.
The company has a large repeat revenue profile with 80 per cent revenue coming from the repeat business. The company has focused on building a robust supply chain and improving end delivery to customers.
Medkart also offers door-step delivery based on the value of the orders. Also, in its next endeavour the company looks to explore online consultancy using digital platforms.
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