Zeno Health, which runs a chain of generic medicine-focussed pharmacies, has raised $25 million from investors led by Korean private equity firm STIC Investments.
Existing investor Lightbox Ventures was a significant participant in the Series C funding round
Mumbai-based Lightbox had first put money into Zeno Health in 2019. So far, it has deployed $25 million into the company and holds 30% equity in the firm, Lightbox Ventures founding partner Sandeep Murthy told ET.
Mumbai-based Zeno Health, earlier known as Generico, was founded by IIT Bombay alumni Siddharth Gadia and Girish Agarwal in 2017. It primarily sells generic medicines through a brand called Goodaid. It also offers franchisee of a pharmacy network under the brand of Zeno Health, apart from selling medicines online, all in Maharashtra.
“In the last 18 months, Zeno Health has managed to both improve its gross margins by focusing on helping people buy medicines that it brands, as well as scale the network of pharmacies,” Murthy told ET. “It demonstrates that it is a business that is actually going to be profitable, which allows it to attract capital.”
Zeno Health cofounder Agarwal said, “This funding round is a significant milestone in our quest to revolutionise healthcare. The infusion of capital will enable us to accelerate our efforts in reaching more communities and making a positive impact on healthcare accessibility.” Zeno Health said the latest capital infusion will help it expand its consumer base and footprint, and enhance its technological infrastructure.
Derrick (Kihyun) Yun, managing director of STIC, 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.” Other India-based investments of STIC include quick commerce startup Dunzo and agritech startup Ninjacart.
Zeno Health operates 180 omnichannel stores and a network of 200 micro-franchises. It has a team of more than 530 pharmacists to help with prescription medicines for chronic and recurring diseases, as well as non-prescription goods for general health, well-being and personal care. So far, the startup has served 25 lakh consumers.
