Medlife could possibly top the capital markets in the next two years with its $100 million investment on expanding its business. Most e-pharmacies in the country claim to save time and money and transform the way medicine has been distributed. But most of these delivery mechanisms do not have a proper delivery mechanism and as a result, medicines that were ordered reach the patient late. This is a flaw made by most e-pharmacies currently in the country.
But Medlife’s approach to solving these issues has been huge and Mr Tushar Kumar, CEO of the company says, “Medlife has come to a point where we have become operationally strong and we will be a turn out to be profitable by the next financial year.”
Moreover, the Bengaluru-based company was founded by Prashanth Singh and Kumar in November 2014 with an investment of $15 million. Later, the company received $30 million from the founder’s family-run trust as well as some promoters. Mr Kumar belongs to a family that owns Alkem Laboratory that manufactures, markets and develops medicines in the country and with the help of his family business, he was able to pool in an investment of $50 million for bringing the business to life.
With such a massive investment, the company now plans to make an even bigger investment of $100 million for the growth of different business verticals.
Currently, the e-pharmaceutical industry in India is worth Rs 2,500 crore with four mightly players such as Medlife, and other online pharmacy companies. Among all other players, Medlife is said to have 30% of the share on the e-pharmaceutical market. Now the company intends to own 50% of the shares over the next following 18 months.
Also, the company claims that it is the only e-pharmacy to have crossed Rs 710 crore revenues and is set to close at a gross value of Rs 830 crore by the end of the 2019 financial year. This is a huge 2.5 times increase in comparison to the financial year of 2018.
“Also, one major factor that gave Medlife a name was a significant visibility in its business was due to its latest television commercial and was received very well by its customers,” says Kumar.
In terms of the companies brand campaign which runs with the tagline ‘Lafaddu Lal’ and its brand ambassador Boman Irani, the company has scaled through heights with this second trigger. The third major factor that brought in more visibility was the trust that Medlife had brought in from most of its customers returning for any medicine requirement.
Currently, around 80% of the companies revenues come from its e-pharmaceutical business that operates in 16 different cities and delivers to 23,000 PIN codes in India. The company has plans of expanding its services from 16 cities to 29 cities by January of 2019. Also, it has launched an express delivery mechanism in Bengaluru that runs on an aim to reach medicines more easily to the public, thus making it more convenient.
Some of the companies other verticals include a centralised laboratory, diagnostic centres that offer medical testing and sampling. The company also plans to establish 50 more laboratories in Tier 1,2 and 3 cities across the country.
The company also houses another area of focus and that is its Ayurvedic essential products that have 20 different Ayurvedic health supplements, fitness products, footwear for diabetics and food items and glucose meters. All of these verticles are said to increase in the next coming 3 years.
Unlike our competitors, that follows the aggregator model of business, Medlife has a totally different approach called the inventory model that aims to invent and expand our business and verticles thus going PAN India. Also, the discounting model of making sales will continue on till the people shift their favour of buying medicines online. In order to change consumer behaviour, deep discounting plays a crucial part in running a business and thus the company believes in doing this.1234