Saveo will also use the investment to finance capital expenditure and to meet its current working capital requirements
Saveo Board passed a special resolution to allot 3,694 seed CCPS at an issue price of INR 76,851.40 per share
The startup had last raised $4 Mn in a funding round from Matrix Partners India and RTP Global in January last year.
B2B pharmacy marketplace Saveo has raised INR 28.38 Cr ($3.47 Mn) in a seed funding round led by LC Nueva Alternative Investment Fund (AIF), Jetty Ventures, and Gunosy Capital Partners.
The pharmacy startup will use the funding to accelerate growth and expand its footprint across the country. Saveo will also use the investment to finance capital expenditure and to meet its current working capital requirements.
The Board of the company passed a special resolution to allot 3,694 seed compulsorily convertible preference shares (Seed CCPS) at an issue price of INR 76,851.40 per share.
Regulatory filings accessed by Inc42 show that 521 shares each were allotted to LC Nueva, Jetty Ventures and Gunosy Capital for a consideration of INR 4 Cr. Similarly, Matrix Partners India also picked up 504 shares for INR 3.87 Cr, while Tejal Merchantile picked up 456 shares at around INR 3.5 Cr.
Once the allotment goes through, investors shareholding in the company would include:
- Matrix Partners will own 11.81% of the startup (through its multiple holdings)
- RTP Global will hold 10.42%
- IQ Alpha will hold 9.06%
- LC Nueva will own 5.71% of the stakes
- Incubate Fund will acquire 4.87% of the total stakes
Founded in 2019 by IIT alumni Amit Kumar, Anurag Savarnya, Shivansh Shrivastava, and Vivek Jaiswal, Saveo operates a marketplace that acts as a procurement point between pharmaceutical companies and retailers for surgical, homeopathic, and allopathic medicines. It also operates another vertical which enables brick-and-mortar pharmacy stores to digitize their businesses.
This is the second seed funding round raised by the B2B e-commerce marketplace in the last 19 months. It had raised $4 Mn as part of its previous funding round from Matrix Partners India and RTP Global in January last year.
Saveo competes with the likes of Pharmarack and Biddano in the highly competitive space.
According to the latest data, the B2B marketplace reported operating revenue of INR 8.05 Cr in the financial year 2020-21 (FY21), up from INR 1.93 Cr in FY20. However, the startup’s losses grew 14X to INR 4.72 Cr in FY21 from INR 33 Lakh in FY20.
Saveo operates at the intersection of SaaS and pharmacy. SaaS health tech space is estimated to grow at the fastest pace within the burgeoning health tech space at a CAGR of 45% by 2025. The E-pharmacy segment too is expected to see a major uptick and is projected to see a growth of 38% CAGR by 2025.