Pune-based online pharmacy MedsOnWay has raised about Rs 4 crores ($600,000) from RPG Ventures, the venture capitalist wing of RPG Group.
The investment is part of RPG Group’s strategy to use RPG Ventures to incubate and build new businesses, reported ET.
The chronic focused e-pharmacy, founded by Aniket Bora and Prashant Pillai in 2015, allows users to search for medicines, upload prescriptions and get medicines delivered at their doorstep through a mobile app.
Available on iOS and Android, the startup also aims at promoting generic drugs and the cost-effectiveness associated with it.
As per the report, MedsOnWay is clocking a 15% month-on-month growth in revenues. With 250 orders every day and having served over 25,000 customers, Medsonway claims to sell more chronic medicines than leading pharmacy chains in the Pune market.
“Chronic medicines represent a Rs 30,000-crore market opportunity. With increasing incidence of lifestyle diseases in the country, this market is expected to maintain its growth rate and become the largest component the Indian pharma sector,” stated RPG Ventures in a statement.
It further added, “Subscription-based e-pharmacies are well positioned to cater to this growing market as the customer lifetime value for is high due to the long-term nature of medication and high average order value.”
MedsOnWay is expected to raise more capital to further expand its footprint across India. Being a data-driven business, the company will make extensive use of analytics to focus on customer acquisition as well as customer retention and revival strategies.
Last month, online pharmacy marketplace Netmeds secured an investment of $14 million led by Tanncam, a Cambodian investment holding company, which was joined by Sistema Asia Fund.