Online Pharmacy Start-up Medlife Raises INR 110 Cr from Wilson Global Opportunities Fund
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Online pharmacy start-up Medlife has raised INR 110 crore through the issue of 1,10,000 non-convertible secured debentures from Wilson Global Opportunities Fund according to Registrar of Companies (ROC) filings accessed by Entrepreneur India.
According to the document, the funds will be utilized for working capital requirements, marketing business activities, technological development, employee costs, and to support the future growth of the company.
Medlife was founded by Prashant Singh and Tushar Kumar in 2014. The Bengaluru-based healthtech start-up is currently operating in 29 states and over 4000 cities and towns across the country.
Medlife, raised $17 Mn in an equity funding round in April this year from the family trust of Kumar, Prasid Uno Family trust. In May this year, Medlife also acquired medicine delivery start-up Myra Medicines for an undisclosed amount.
Challenges of the Ecosystem
The online e-pharmacy ecosystem has been facing tough times. Last year, The Madras High Court imposed a ban on the e-pharmacies that were operating without a license. Moreover, fake drug menace in the country wherein the authenticity of medicines is getting questioned too brought the healthtech ecosystem under the radar. The government, on its part, is yet to come up with a proper framework that would clarify the position of e-pharmacies in India.
Additionally, the healthtech ecosystem in India is in need of investment. The entrepreneurs from this space have often highlighted how investors need to provide greater financial support to healthtech start-ups to spur innovation and growth. They have also refuted the claims that the sector promises less returns and have concluded that healthtech has potential to produce great returns. All these challenges are some of the reasons why making healthcare affordable and accessible is a dream, India continues to achieve.
Apart from Medlife, PharmEasy, 1mg and Netmeds are a few other start-ups in the e-pharmacy space that have carved a niche in the sector.