Telehealth Platforms Truemeds Raises $22 million in a Series B Round of Funding
The company plans to utilize the funds to accelerate growth in the untapped domestic market and expand its coverage across the country
Telehealth platform Truemeds announced that they have raised $22 million in its series B funding round. The funding was led by private equity fund Westbridge Capital and also saw participation from existing investors InfoEdge Ventures, Asha Impact and IAN Fund. The round witnessed oversubscription from new and existing investors however the company decided to cap the raise to $22 million.
Founded by Ex-Abbott executives, Akshat Nayyar and Dr.Kunal Wani, Truemeds was founded in 2019 and is headquartered in Mumbai. The company last raised $5 million in a Series A funding round back in June, 2021. Truemeds plans to utilize the funds to accelerate growth in the untapped domestic market and expand its coverage across the country.
The telehealth industry, of which Truemeds is a key player, is expected to enjoy a significant growth in business in the coming years. A Statista report released in 2020 predicted the industry to generate revenue a total revenue of $5.5 billion by 2025. The company has seen a good growth in demand owed to its proprietary algorithm and tele-consultation, through which they are able to recommend best value medicines to customers with precise scientific matching.
India is one of the very few markets where Truemeds has pseudo-categorisation of medicines in branded and generic-generic to create different price tiers between them. 95 percent of the drugs sold in India are off-patent (thus technically generics). There is absolutely no difference in the scientific composition of generics and branded drugs.
This market is growing at 1.5 times the overall pharmaceutical market and following the US landscape where the generics prescription share moved from 40% in 2005 to over 85 percent in 2019. The market move towards generics is inevitable, Truemeds co-founder Akshat Nayyar believes, and he believes his company will lead that change.
Commenting on the development, Nayyar said, "We are overwhelmed by the confidence our incoming and existing investors have shown in us. We are excited to welcome Westbridge Capital to join us as we make Truemeds a household name."
Sandeep Singhal, Managing Director, Westbridge Capital, commented, "We are excited to partner with Truemeds as they create value for patients by delivering high quality drugs at extremely affordable prices at the patients' doorstep. The founding team's strong category understanding has resulted in the success at Truemeds and we are excited to help take the company to the next level."