Telehealth platform Truemeds is raising Rs 375.2 crore or (approximately $44 million) in its Series C round led by Accel India and with the participation of WestBridge and Info Edge.
The board at Telehealth platform Truemeds has passed a special resolution to issue 1 equity and 49,300 Series C preference shares at an issue price of Rs 76,110 each to raise the aforementioned sum, its regulatory filing accessed from the Registrar of Companies (RoC) shows.
Accel India will invest Rs 285.4 crore, while WestBridge, through its investment vehicles Konark and MMPL Trust, will contribute Rs 68.49 crore. Info Edge will also join the round with Rs 21.31 crore.
The company will use these proceeds to advance the business and facilitate the planned growth, as per filings. According to Entrackr’s estimates, the company will be valued at around $340 million (post-money).
With the new funding, Accel India will hold approximately 10% of the company, while WestBridge and Info Edge will own 28.64% and 23.02%, respectively. Co-founders Akshat Nayyar and Kunal Wani will collectively retain a 22.43% stake in their personal capacity.
Founded by Nayyar and Wani, Truemeds lets consumers find medicines of alternate brands with the help of prescriptions uploaded by them.
Truemeds recorded an impressive two-fold growth in its revenue to Rs 315 crore during the fiscal year ended March 2024. Efficient cost management and scaling efforts also contributed to a 9% reduction in losses, bringing them down to Rs 61 crore during the same period.
Awareness of generic medicines has been rising fast in India, thanks to government backed efforts to provide cheaper meds at both state and central levels. While that has created a market for users looking beyond the prescribed options, it also brings with it the biggest challenge for Truemeds.
Truly successful government efforts will undermine growth in quite a few of the high volume categories. However, with government efforts focused on select, high usage molecules, it leaves enough potential for firms like Truemeds to capitalize on the new awareness for options.
That seems to be the thesis of the latest funding at least. Be it vitamins and supplements, or even Homeopathic meds, the firm has built up a wide selection on offer for users seeking cheaper options here. Competition remains intense however, both from government backed pharmacies or private pharmacies that have also latched on to the new reality of a changing market.
