▼ Summary
– India’s Truemeds focuses on affordability by helping patients switch to lower-cost generic medicines, differentiating itself in the crowded e-pharmacy market.
– The startup raised $85 million in a new funding round, increasing its valuation to over $400 million, up from $110 million two years ago.
– Truemeds’ revenue grew 66% year-over-year to ₹5 billion ($57 million), serving 500,000 monthly customers, with 75% from tier-2 cities and beyond.
– The company offers deeper discounts (averaging 32%) and uses technology to optimize procurement and logistics, passing savings to customers.
– Truemeds plans to expand into AI-powered consultations, diagnostics, and fulfillment centers while maintaining its mission of affordable healthcare.
India’s healthcare sector is witnessing a surge in demand for affordable medicines, with chronic diseases affecting over 400 million people. While most digital pharmacies focus on fast deliveries, one startup is taking a different approach by prioritizing cost savings through generic alternatives. Truemeds, a Mumbai-based e-pharmacy, has secured $85 million in fresh funding, catapulting its valuation to over $400 million, a fourfold increase from its previous round.
The investment, led by Accel, includes $65 million in primary funding and $20 million in secondary transactions, with participation from Peak XV Partners, WestBridge Capital, and InfoEdge Ventures. This marks a significant milestone for the six-year-old company, which has carved a niche by helping patients transition from expensive branded drugs to more economical generics.
Unlike competitors who initially relied on steep discounts to attract customers, Truemeds has doubled down on affordability. While rivals scaled back promotions to focus on rapid deliveries, the startup increased its average discounts from 29% to 32% over the past year. Patients switching to generic alternatives on the platform save an average of 47% on medication costs, thanks to Truemeds’ strategic procurement partnerships with pharmaceutical manufacturers.
The company’s revenue surged 66% year-over-year, reaching ₹5 billion ($57 million) in the last fiscal year. With a customer base of 3 million, including 500,000 monthly active users, Truemeds now serves over 20,000 postal codes across India. More than 75% of its users come from tier-2 cities and beyond, highlighting its success in reaching underserved markets.
Convincing patients to switch from trusted branded medicines remains a hurdle. Akshat Nayyar, co-founder of Truemeds, explains that consumers often question why generic drugs are cheaper. To address this, the company conducts 10-12 million consultations annually, using algorithms to recommend suitable alternatives based on factors like formulation, manufacturer credibility, and patient demographics.
Looking ahead, Truemeds plans to integrate AI-driven personalization to tailor conversations based on user behavior. It’s also expanding into diagnostics, partnering with pathology labs to offer low-cost testing in tier-2 cities within the next few months. Additionally, the startup aims to triple its fulfillment centers from 19 to enhance operational efficiency.
With a workforce of 2,800 employees and a strong financial runway, Truemeds is poised to further disrupt India’s healthcare market. “Our mission is to make healthcare affordable,” says Nayyar. “We started with medicines, and now we’re scaling diagnostics with the same cost-saving approach.”
The company’s success underscores a growing shift in India’s digital pharmacy landscape, where affordability, not just speed, is becoming a key differentiator.
(Source: TechCrunch)
