Leadpreneur's
Success Story of India's First Pharmacy...
Pharmacy Made Easy!
About PharmEasy:
PharmEasy is a remarkable consumer healthcare app that offers an array of on-demand
healthcare solutions right at your doorstep.
From prescription and over-the-counter (OTC) medications to an extensive range of other
consumer healthcare products, PharmEasy has got you covered.
Additionally, the app also provides comprehensive diagnostic test services and teleconsultations, making it a one-stop shop for all your healthcare needs.
Founder, Founding Year, and Headquarters of PharmEasy:
It's fascinating to know that PharmEasy, was established in 2014 by the brilliant minds of Dhaval Shah and Dharmil Sheth. The company's headquarters are located in Mumbai, Maharashtra, which is an excellent location for a healthcare startup to thrive.
Business Model of PharmEasy:
PharmEasy is a game-changer in the world of medicine delivery, functioning as a three-way
chain between buyers, suppliers, and the distribution network.
Acting as an e-pharmacy, the processes of PharmEasy are mostly online, making it a
hassle-free platform for buyers to search for and purchase their medicines or healthcare
accessories.
PharmEasy collaborates with a wide range of local suppliers and medical shops and earns
revenue from pharmaceutical companies looking to showcase their products online as featured brands.
Furthermore, the company operates with a vast distribution network spread out across India, enabling it to deliver its products to a broad range of pin codes. It's worth noting that due to government regulations, PharmEasy does not deliver Schedule H drugs.
To further add to the customer experience, the mobile app offers a 20% discount on orders, increasing brand recognition and attracting new customers.
Lead investors of PharmEasy:
PharmEasy has 12 lead investors among the 43 total investors that it has. VestinWolf Capital, Trifecta Capital, Steadview Capital, Amansa Capital, IIFL Finance and more are among the lead investors of PharmEasy.
Product Marketing Countries of PharmEasy:
PharmEasy provides healthcare services across 2500+ cities in India, including Mumbai, Delhi, Kolkata, Bengaluru, and Ahmedabad.
Growth of PharmEasy:
It's fascinating to note that PharmEasy has achieved a remarkable feat by almost doubling its revenue from Rs 340 cr in the previous fiscal year to around Rs 737 cr in FY20. Dhaval Shahand Dharmil Sheth's exceptional leadership and decision-making skills have played a crucial role in this impressive growth.
According to financial reports, the company has set a new record of growth by collecting Rs 2,360 cr worth of revenues in FY21, a 220% increase from the previous year. However, the
expenses also increased from Rs 1,084.4 cr to Rs 2,980.9 cr, resulting in a loss of Rs 641.3 cr
in FY21.
Despite this, the company has filed a DRHP to raise up to Rs 6,250 cr through a fresh issue of shares, with existing investors not selling any shares in the upcoming IPO.
Furthermore, PharmEasy is looking to raise up to INR 1,250 cr via private placement before the IPO. The company has partnered with over 60K brick-and-mortar pharmacies and served over 20 mn patients since its inception.
PharmEasy's success story is a testament to the fact that there are no shortcuts to success.
Marketing Strategies Opted by PharmEasy:
Marketing is a crucial aspect of any business, especially for startups looking to make a name for themselves in the market. PharmEasy, an Indian company, is no exception. The brand has implemented a range of marketing strategies to grab the attention of its customers, both online and offline.
One such strategy that proved to be immensely successful was TV commercials. PharmEasy
created a catchy jingle, ‘PharmEasy, PharmEasy, Take it easy PharmEasy’, which played in the background of their ad and instantly caught the audience's attention. This helped the brand gain immense popularity in the Indian market.
Another marketing strategy that the brand has recently adopted is meme marketing. In today's digital age, memes have become increasingly popular on social media platforms. PharmEasy has smartly leveraged this trend by creating memes that are quirky, creative, and relatable. The
brand has used its tagline #TakeItEasy in these memes and has thus gained attention from its customers in an interesting way.
SMS and email marketing play a crucial role in the success of PharmEasy. By leveraging
technology, the company sends automated messages and emails to customers, keeping them informed about new offers and discounts. This approach has proven to be an effective way of capturing customers' attention.
In addition to this, PharmEasy also used cricket sponsorships to establish a foothold in the
market. By investing in cricket, the brand became associated with the sport, and an ad
placement during a match helped build trust with viewers. This strategy helped PharmEasy
become a reliable brand in the e-pharmacy industry.
Another marketing strategy employed by PharmEasy is influencer marketing. As social media influencers and bloggers gain popularity, PharmEasy has leveraged its large audiences to promote its brand. The company has even created reels with popular digital creators like Viraj Ghelani and comedian Sapan Verma.
These tactics have proven to be both insightful and interesting, and have helped PharmEasy in its quest to become a trusted name in the e-pharmacy space.
Future Plans of PharmEasy:
PharmEasy's upcoming plans have been revealed and it seems that they are taking a cautious approach towards their IPO. According to insiders, the company is only considering a fresh issue and listing on a stock exchange sometime in 2023.
It is anticipated that the IPO will be completed by the end of 2023. Although this means that API Holdings will have to re-file papers for the IPO, the risk is worth taking.
The digital industry has faced challenges since the sharp crash in Paytm and other companies like Policybazaar and Zomato have only added to the crisis. It's clear that PharmEasy is paying a steep price for this, but their future plans remain insightful and interesting.