Global venture firm Accel is in advanced negotiations to lead a funding round of $30-40 million in Truemeds, the India online pharmacy providing affordable generic alternatives to expensive branded medication, according to sources familiar with the matter. The six-year-old startup from Mumbai is valued around $330 million, stated the sources who declined to share their identities as the talks were private.
While the deal is not yet done and can still collapse or the terms change, it marks a significant interest from Accel to back Truemeds, which is going through significant dislocations in its overall online pharmacy market.
Accel and Truemeds haven’t declined to comment on the talks.
Online Pharmacy Upheaval
This funding round by Truemeds comes in a time of turmoil and consolidation for online pharmacies in India. PharmEasy is a case in point; at one time, it was worth $5.6 billion and received investment from Prosus Ventures but has its valuation below $600 million after failing to repay a loan to Goldman Sachs. Another strong contender in the game, 1mg, was acquired by Tata Digital in 2021.
Unlike its peers, Truemeds is doing something unique in resetting how medicines reach its customers. The company bypasses those antique middlemen that lead to expensive medicines and brings to the customers generics with the same active ingredients at affordable costs. Following the prescription upload on the portal, Truemeds’ doctors, all in-house, prescribe alternatives churned out by Indian pharmaceutical companies, thereby allowing patients to reduce their costly medicines expenditure sharply, especially chronic patients.
Digital-First Approach and Reach
Truemeds is entirely digital – it hosts virtual consultations, ordering of drugs, and delivers those at home. It, therefore, does not need the patient to visit a pharmacy, which is kept in a physical setting. This approach allows the platform to expand the reach of customers even to very remote regions in the country.
Against this backdrop of increasing demand for affordable healthcare and the greater need for cost-effective medication solutions, Truemeds is well poised for further growth. Should the Accel-led round happen, infusion of capital would go a long way in giving it a remarkable boost toward its goal of further disrupting the online pharmacy landscape of India.
