The funding round was led by South Korean PE firm STIC Investments and also saw participation from existing investor Lightbox
The fresh capital will be utilised to scale up growth, expand the footprint, and spruce up tech infrastructure
Founded in 2017 by Siddharth Gadia and Girish Agarwal, Zeno Health is an omnichannel pharmacy platform that sells generic medicines
Healthtech startup Zeno Health has raised $25 Mn in its Series C funding round led by South Korean private equity (PE) firm STIC Investments. The round also saw participation from existing investor Lightbox.
The capital will be utilised to scale up growth, expand the footprint, and spruce up tech infrastructure. In a statement, Zeno Health also said that the capital will be strategically deployed towards branding exercise and building innovative solutions for diverse markets.
Founded in 2017 by IIT-Bombay alumni Siddharth Gadia and Girish Agarwal, Zeno Health is an omnichannel pharmacy platform that sells generic medicines.
Commenting on the fundraise, Zeno Health cofounder and chief executive officer (CEO) Siddharth Gadia said, “We are thrilled to welcome STIC as a key partner in our journey. Their investment, coupled with the continued commitment from Lightbox, signifies a resounding endorsement of our mission to make quality healthcare affordable to all.”
Chiming in, STIC’s managing director Derrick (Kihyun) Yun said, ”Zeno Health has demonstrated a remarkable commitment to reshaping the healthcare landscape in India. Their vision aligns with our values, and we look forward to contributing to their journey towards making quality healthcare accessible across India.”
With the latest funding round, the startup has reportedly raised more than $56 Mn in equity and debt till date across multiple rounds. It was reportedly valued at more than $90.6 Mn in March 2022.
The Mumbai-based startup claims to operate a network of 180 omnichannel stores and 200 micro-franchises. It also claims to have a team of more than 530 pharmacists under its belt and sells both prescription and non-prescription medicines for chronic as well as recurring diseases.
It claims to have so far served more than 25 Lakh consumers and, as per Gadia, has set its eyes on reaching 1 Cr consumers monthly in the near future.
Zeno Health competes with the likes of traditional brick and mortar stores and existing online pharmacies such as Tata 1mg, Reliance-owned Netmeds, PharmEasy, Flipkart Health+, Amazon Pharmacy, among others.
Zeno Health also comes under the ambit of the Indian online pharmacy space, which has recently landed in choppy regulatory waters. Last year, the Drug Controller General of India (DCGI) sent show-cause notices to 20 online pharmacies for allegedly selling and distributing medicines in violation of the Drugs and Cosmetics Act, 1940.
The Act regulates the import, manufacturing and distribution of medicines in the country.
Apart from this, the Centre has also been looking to regulate the space. Despite the challenges, India’s online pharmacy space continues to be an attractive proposition as more and more people jump on the digital bandwagon and buy medicines online.
As per a report, the homegrown online pharmacy market is projected to soar to a market size of INR 8,947 Cr by 2027.
