Chennai-based online pharma chain Netmeds has raised $35 Mn in a Series C funding round from its existing investors, and medicine distributor and importer Daun Penh Cambodia Group (DPCG).
Daun Penh was joined in the round by Netmed’s existing investors — Sistema Asia Fund, a Singapore-based venture capitalist firm; and Cambodian investment holding company Tanncam Investment.
The company aims to leverage the capital infusion for expanding its reach and making quality medication and healthcare accessible and affordable to more Indians.
Netmeds was founded in 2010 by Pradeep Dadha. The startup is a licensed pharmacy marketplace that offers authenticated prescription and over-the-counter (OTC) medicine digitally along with other health products.
Pradeep Dadha said, “The money would be used to ensure that the company ‘stayed the course’ with regard to the extraordinary double-digit month-on-month growth it has enjoyed since inception.”
Netmeds offers both prescription drugs and non-prescription (OTC) products. Users upload their prescription in NetMeds’ mobile app available on both iOS and Android devices. Company’s pharmacists then examine the prescription to assist with proper dosage, duration, and other points of validity before completing the order. Customers can order medicines online through this its app.
The startup claims to have served more than two lakh customers in more than 800 cities, with access to more than 50,000 prescription drugs for chronic and recurring ailments as well as enhanced lifestyle drugs and thousands of non-prescription goods for wellness, health and personal care.
According to Dr Philip Zimmer, investment adviser for this recent funding, an in-depth analysis was conducted before getting into this deal. “We met Pradeep Dadha and his team, and were thoroughly convinced that they had the vision and the profound experience to scale this business and become one of India’s great brands in e-commerce,” Zimmer said.
Daun Penh Cambodia Group, which has international partners throughout Southeast Asia is focussed on infrastructure development, trading of high-quality medicines.
In October 2017 Netmeds raised $14 Mn from a Cambodian investment holding company Tanncam. In its first round in 2015, it raised $50 Mn from PE firm OrbiMed, a healthcare-focused investment firm; and investment banker Mape. In November 2016, Netmed acquired Delhi-based hyperlocal medicine delivery startup Pluss. The startup is generating an estimated annual revenue of $1 Mn.
The startup competes with mChemist, Medikoe, BigChemist and pharmacy platform 1mg.