PharmEasy - How is the company making ordering medicines so simple?

If you're wondering what PharmEasy offers, it's an online pharmacy that manages the hassle-free delivery of medications and other medical equipment. PharmEasy is present in a number of major Indian cities. PharmEasy has made shopping for pharmaceuticals online more convenient and straightforward. Every day, the company distributes medicine and other medical supplies to tens of thousands of consumers.

PharmEasy - How is the company making ordering medicines so simple?

We can now order our medicines online from a variety of e-commerce medical stores and have them delivered without any hassles, thanks to the digitalization of the medical sector. PharmEasy is a significant provider that makes ordering drugs online simple.

PharmEasy has created a healthcare delivery platform to help India's healthcare system become more efficient and modern. Patients can use the platform to stay in touch with a variety of local pharmacy stores and retailers. Today's dynamic health and well-being ecosystem is driven by data and technology, and PharmEasy is harnessing both to better healthcare in India.

PharmEasy - What Is It And How Does It Work?

Pharmacy is an e-commerce site where you may buy drugs and other healthcare supplies. When someone files a prescription to PharmEasy, it is automatically routed to a nearby drugstore. Customers may get high-quality healthcare items and basics at low prices because of the company's mobile app and web technology.

 The pharmacy offers high-quality products that are comparable to those found in reputable pharmacies and medical stores.

After PharmEasy transmits your medical prescription to the pharmacy, a delivery person receives the medications from the pharmacy while following all of the necessary safeguards and rules. After that, your order is wrapped and delivered to your door.

PharmEasy - Industry
The spread of new-age technology and the internet has aided the expansion of the medical sector, as has been the case with all other industries. Between 2015 and 2019, internet users grew at a CAGR of 18.17 percent, and are anticipated to expand at a CAGR of 8.78 percent between 2020 and 25. Furthermore, between April and September 2020, e-commerce transactions surged by 71.3 percent.

A major consulting group predicts that the Indian e-pharmacies industry would increase more than 7X between 2019 and 2023, rising to US$ 2.7 billion (Rs. 199 billion) by 2023, up from US$ 360 million (Rs. 26.5 billion) in 2018, at a CAGR of 65.5 percent, which is fascinating, to say the least.

Founders and Team of PharmEasy

Dharmil Sheth 
Dharmil is the co-founder of both PharmEasy and API Holdings. He is also the President and Founder of Ekagrata. Prior to creating PharmEasy, Sheth developed 91streets. Dharmil graduated from IIM Ghaziabad with an MBA in Marketing after earning a Btech in Electronics Engineering. Dharmil Sheth's first two employers were Techno Gravity Solutions and, where he worked in Business Development and as a Summer Internet intern, respectively.

Dr. Dhaval Shah 
Dr. Dhaval Shah graduated from Rajiv Gandhi Government Medical College with a bachelor's degree in medicine and a master's degree in business administration from XLRI Jamshedpur. At both of his colleges, Shah was the General Secretary. He went on to work for McKinsey & Company as a consultant before founding PharmEasy and API Holdings.

The Merger of PharmEasy and Medlife has been approved by the CCI
The Indian Competition Commission approved the combination of Medlife (Online Pharmacy) with PharmEasy on September 22, 2020. Following the advent of Amazon and Reliance, this action is referred regarded as the First Major Consolidation in this industry.

According to the terms of the agreement, PharmEasy's Parent Entity would acquire 100 percent of Medlife's ownership, while Medlife's promoters will receive a 19.95 percent share in the company.

Startup Story of PharmEasy
The founder of PharmEasy, Dharmil Sheth, and his doctor friend, Dr. Dhaval Shah, came up with the idea of creating an online pharmacy. They both saw the potential of technology in the healthcare industry, and it was this notion that sparked the creation of PharmEasy in 2014. Currently, over 98 percent of Indian pin codes are covered by the company's services.

The organization intended to fulfill its purpose of delivering everything linked to healthcare to customers' doorsteps, something it is always on the verge of accomplishing. In India's healthcare industry, digitization has become a necessary component. Every step in the sector has been digitized, from organizing a doctor's visit to delivering results and drugs. E-pharmacies like PharmEasy deserve a lot of the credit for this endeavor. Because of this e-pharmacies, India's "health commerce industry" is expanding at unprecedented rates.

Business Model for PharmEasy
PharmEasy ships medicines and other medical supplies to Indian cities and towns. It's similar to Grofers, but for medicine. PharmEasy's pin codes are utilized to locate the pharmacies closest to the clients. Customers can order things using the PharmEasy website or the PharmEasy mobile app. If consumers order through the mobile app, they will receive discounts of up to 20%, increasing brand awareness and bringing in new clients to PharmEasy.

PharmEasy is an e-pharmacy with primarily online processes that act as a three-way link between buyers, suppliers, and the distribution network.

Buyers - PharmEasy is a ready-to-use platform that allows customers to look for and purchase pharmaceuticals and healthcare accessories online.

PharmEasy works with a variety of local suppliers and medical businesses, all of whom assist the company in organizing its inventory and keeping it up to date on the internet. In addition, the company makes money from pharmaceutical companies that want to promote their products as featured brands online and on the PharmEasy app.

PharmEasy operates with a large distribution network that stretches across the country. This allows the organization to transport its items across India to a wide range of pin codes.

Revenue Model - PharmEasy
PharmEasy makes the majority of its money by advertising sponsored results from various pharmaceutical companies. Advertisements of this nature can be found on the home pages of such organizations. Advertising is a big source of money for this e-pharmacy, and it is used to its full potential. PharmEasy's revenue is boosted by attractive discounts. PharmEasy also receives commissions from its clients for the healthcare products and medicines that are sold through the platform. The brand also makes money from the delivery fees that are imposed on the products.

PharmEasy - Funding

To date, PharmEasy has raised $1.60 billion in investment. PharmEasy had previously raised a private equity fund from VestinWolf Capital Management, after a $354 Pre-IPO round from a group of investors.

In June 2021, the firm was valued at $1.8 billion thanks to a $500 million Series F investment deal led by Arokiaswamy Velumani. In its Pre-IPO round of funding, which was split into two stages, the company raised another $354 million. Amansa Capital, Steadview Capital, OrbiMed, Abu Dhabi's sovereign wealth fund ADQ, and others contributed $204 million in the primary round. PharmEasy raised roughly $150 million in its second round of funding from the partial exits of a number of existing angel and early-stage investors, including Fundamentum, Eight Roads Ventures, Bessemer Venture Partners, and others. PharmEasy, which is preparing to file it's Draft Red Herring Prospectus (DRHP), has also revealed that more than 20 senior employees, five founders, and some new investors have chosen secondary shares valued at $5.6 billion. As of February 2022, the corporation is valued at $5.4 billion.





November 1, 2021

Private Equity Fund


VestinWolf Capital Management

October 18, 2021

Pre-IPO Round

$354 million

Amansa Capital, Fundamentum, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, and more

July 7, 2021

Series F

$500 million

Arokiaswamy Velumani

June 17, 2021

Secondary Market

$20 million

B Capital

April 7, 2021

Series E

$390 million

Prosus Ventures, TPG Growth and others

November 27, 2019

Series D

$220 million

Temasek Holdings and others

September 26, 2018

Series C

$50 million

Eight Roads Ventures India and others

September 11, 2018

Debt Financing

$5.44 million

InnoVen Capital and more

February 28, 2018

Series C

$27.23 million

Eight Roads Ventures India, F-Prime Capital, and others

April 25, 2017

Series B

$2 Million

Bessemer Venture Partners

March 30, 2017

Series B

$16 Million

Bessemer Venture Partners

March 1, 2016

Series A

$5 Million

Bessemer Venture Partners

Acquisitions - PharmEasy

PharmEasy's most recent acquisition is Aknamed, a Bangalore-based healthcare supply chain management firm. According to regulatory papers, the latter has approved the sale of 975,937 equity shares to API Holdings at a price of Rs 3,155.94 in order to raise Rs 308 crores (about $42 million) from PharmEasy's parent company. Furthermore, the corporation is said to have bought out the stakes of the company's top 5 promoters, including its co-founders, who held about 50.67 percent of the company. Aknamed will now operate as a subsidiary of API Holdings Pvt Ltd, the parent company of PharmEasy.

Acquiree Name




September 14, 2021

$144 mn

Thyrocare Technologies

June 26, 2021

$605.70 mn


August 18, 2020

$235 mn


Challenges Faced by PharmEasy
The company began operations in 2014 and has since grown to become a prominent participant in the online pharmacy industry. PharmEasy, on the other hand, did not achieve immediate success. Challenges are unavoidable, and the e-pharmacy in question was no exception. PharmEasy found it difficult to provide products without a prescription.

It wasn't enough to know the names of the drugs. The products could only be supplied with a valid prescription. Many people were afraid of the consequences if they uploaded their medications. Furthermore, location monitoring proved challenging for PharmEasy's delivery agents when the company first launched. But that is no longer the case.

Since its inception in 2014, the company has expanded substantially as a result of the obstacles it has faced.

Competitors - PharmEasy
The following are the company's main competitors:

  • Tata 1Mg
  • Ranger Health
  • Medibuddy
  • Myra Medicines
  • Hello Heart
  • BrownPacket and more.

Other hospitals and chains, such as Apollo Pharmacy, are also attempting to increase overall sales through their online platforms in addition to their physical locations. The majority of the companies featured here are attempting to improve their online pharmaceutical delivery system. However, the majority of them are lagging behind PharmEasy.

Future Plans - PharmEasy
PharmEasy has planned to raise close to Rs 6,250 crore through a new share offering by the end of 2021. As of February 2022, the pharmacy unicorn is considering an IPO round. The healthcare unicorn is currently rethinking the timing of its first public offering (IPO) due to market volatility.