Why are investors betting on only 85 million dollars on the general drug strategy of this Indian company?

with More than 400 million chronic patientsIndia is one of the largest drug markets in the world. But while most electronic medications are chasing speed, the ability to withstand costs is still the real challenge. Truemeds Take a different path: helping patients to switch to low -cost alternatives, the betting now brings fruits with new financing at about four times his previous evaluation.

The start -up company raised six years of $ 85 million in a new round that includes $ 65 million in primary and $ 20 million of secondary financing led by Access, as well as participation from PEAK XV Partners. Techcrunch I mentioned for the first time in ACCEL talks To support Truemeds last year. The current investors also participated in WestBridge Capital and Infoedge.

The new round strengthened the TrueEMEDS evaluation of more than $ 400 million, up from $ 110 million in its last round two years ago.

Trueeds was established in 2019, and the market entered a time when the online pharmacy area in India was already crowded with major players who provide highly slope discounts on brand medicines. But some of these companies fought to maintain the project-backed project, for example, witnessed their evaluation A decrease from the peak of $ 5.6 billion to less than 600 million dollarswhile 1MG was obtained by Tata DigitalPart of the Tata Group. Instead of competing, TrueEEMEDs chose to focus on a relatively specialized chip: public medicines.

“There is no way to educate the user that you can have more options at reasonable prices if you cannot withstand the costs of these medications,” said co -founder of TrueEEMEDS Akshat Nayyar (in the image above, to the left) in an interview. “This is where we felt that no one in the value chain was working for it, and we could fill that gap.”

Its headquarters in Mumbai recommends general alternatives to consumers for branded drugs they need. This ultimately helps consumers to save money, as public drugs are usually more affordable than branded versions due to cost efficiency in their development process.

Truemeds says her distinct approach has paid, as revenues have increased by more than 66 % on an annual basis to $ 5 billion ($ 57 million) in the past fiscal year. The startup says it maintains more than 15 % of its revenues after 12 months and now serves 500,000 customers every month, with a total of 3 million customers so far. Moreover, she now serves more than 20,000 postal symbols throughout the country, with more than 75 % of its customers from the second level cities and beyond.

However, customer education about the alternatives to prescribed drugs – and persuading them to switch from brands with medicines – still represents a challenge.

“Since you are based on the price of your describing brand, and when you suddenly see a lower price, you want to know the reason for its decline,” Nayyar told Techcrunch:

Increased discounts while competitors are retreating

While the electronic circuits today are chasing speed on savings, the early play book for the sector was different. Online pharmacies in India are used to providing up to 25 % discounts to attract customers. However, Nayyar said that this decreased to 20 % and then 15 % – the new average – as most of the burning funds for the acquisition of new customers and its axis to deliver faster as the main distinction.

Meanwhile, Truemeds went in the opposite direction, increasing its average discounts from 29 % to 32 % in the past 12 months. For a normal user who replaces brands on the platform, savings reach 47 % on its medicine, the company says.

He said that this comes from the deep purchases of TrueEMEDS with Pharma, as the startup uses its technology to give manufacturers a better request for demand, which helps them to plan more efficiently in the next seasons.

The startup also depends on its logistics services in some of the main cities in which it works and uses low -cost logistics partners for the rest.

Nayyar said: “We believe the four -hour delivery model is more than enough from the patient’s chronic perspective,” Nayyar said. “You can do more planned purchases in this way, but we want to do it in the most effective way, more and more discounts for the final user rather than (focus on) the fastest delivery of this issue.”

Next: The allocation in which artificial intelligence works and the diagnoses of the doorstep

Since Truemeds needs to persuade customers to choose medicines through branded drugs, they are going through deeper consultations with them. It is already taking place 10-12 million consultations annually. The startup has developed an algorithm over the years looking at various parameters to accurately suggest alternatives to drugs with brands required by the customer. It considers the nuances like whether the drug is covered with sugar if it is a young patient, as it is manufactured, and whether the factory is accredited by GMP, among other things. Also start starting Chatbot to quickly process some user quarrels.

More more on the road map. The company plans to develop a system based on artificial intelligence that allocates talks based on customer behavior and previous interactions with general alternatives. It also opens the Bangaluru office with allocating at least 20 % of its capital for engineering and product development.

Besides medications, TrueEEMEDS plans to enter the diagnosis through partnerships with national pathology laboratories, and plans to test tests in some cities in the second level in the three months to the next four.

The co -founder said: “The main task remains the same, which makes health care affordable for the final user,” the co -founder said. “It has begun with medications. Now that the model has been established, we will continue to limit it. At one time, we also want to see whether we can do something similar to the interface of the diagnosis, where we can be the lowest cost provider for at least the most common tests.”

The startup also plans to increase the number of its 300 % loyalty center – from 19 currently – over the next 12 months, with the aim of deepening its presence in the current markets.

Before this tour, TrueEMEDS raised $ 50 million and still has 30-35 % of this capital in the bank, Nayyar said.

Upon starting a workforce of a working force of 2,800 people, with 250 in its office in Mumbai.