PharmEasy, a Mumbai-based online healthcare delivery platform, allows users to get the required drugs, healthcare products, and diagnostic tests at their doorsteps within the shortest time. Since the digital healthcare sector in India is booming, PharmEasy, a renowned digital pharmacy, and is significantly contributing to the modernisation of healthcare in India. Being the most extensive e-commerce pharmacy and leading healthcare aggregator, the company has also made its presence in the grey market allowing potential investors to buy PharmEasy unlisted shares. The market valuation of the company in FY21 was INR 4,603 crore. Being the primary player in the market, PharmEasy's business model is what makes it stand out among its competitors.
In this blog, we will walk you through the business model of PharmEasy. Let's start from scratch.
Tracking The Background Of PharmEasy
Incorporated in 2014, PharmEasy was the idea of Dharmil Seth and Dhaval Shah, who wanted to make healthcare affordable and accessible to one and all in India. The company offers online consultations, medicines, diagnostics tests, and healthcare products from registered and trusted pharmacies. In 2016, the company received Rs. 34 crores in series-A funding and expanded business in 5 cities. In series-B funding in 2017, the company received Rs 104 crores and expanded its business into 700 cities. In series- C funding in 2018, the company expanded PAN India's presence after receiving Rs 13 crores.
Today, PharmEasy has more than 10,000+ retail stores working 24*7 to ensure medicines are delivered on time and at the best prices. Since its inception, the company has been earning quite well and giving investors an opportunity to invest in its unlisted shares. Before investing in its shares, investors must know about PharmEasy unlisted share price to make a wise decision.
PharmEasy Business Model
PharmEasy follows an uncomplicated and straightforward business model which works in a particular way. The company always ensures that the drugs and equipment they supply are of the first water and are delivered on time. PharmEasy has collaborated with multiple pharmacies that are licensed to supply drugs. The company's business model offers around 20% discount on the orders collected via the app. The complete customer-centric approach of the company makes it stand out among its competitors.
Revenue Model
Considering the revenue model, PharmEasy's vital income source is advertising. The ads are majorly from sectors such as telecom companies, diagnostic centres, and e-wallets. The sale of fitness and drug equipment is another source of revenue generation for the company. The revenue of PharmEasy from operations grew to Rs. 5,729 crores during the fiscal year ending March 2022 from Rs 2,335 crore in FY21 as per the company's annual financial report. The company also earned revenue from diagnostic services, teleconsulting, software, and licensing of internet portals up over 16x to Rs 418 crore in FY22 from Rs. 26 crores in FY21.
In addition, the company also earns revenue through its commission model. The percentage of the commission is already defined based on the market scenario. With its exceptional revenue model, the company has raised over a billion dollars till date. PharmEasy earned a $217 million worth round in October last year. Also, the company turned unicorn after raising a $350 million round proposed by Propus and TPG Growth in April 2021.
Let’s look at the financial performance of the company in the table below:
Particulars (Rs. in Cr) | 2020 | 2021 | 2022 |
Revenue from operations | 667 | 2335 | 5728 |
Other income | 70 | 25 | 52 |
Total revenue | 737 | 2360 | 5781 |
EBITDA | -368 | -569 | -2303 |
The company also filed for IPO in 2021 with a valuation of INR 21,800 CR ($3 billion), which is still under process and can be an opportunity for people to invest in PharmEasy unlisted shares.
Strengths Of The Company
The business model of PharmEasy also comprises strengths of the company that makes it different from its competitors, such as Myra Medicines, Hello Heart, Brown Packet, and Ranger Health. Let's consider the strengths of the company:
Increased use of advanced technology
With the increased use of advanced technology, buying things online has become more convenient, especially after the Covid-19 pandemic. It is an advantage for companies like PharmEasy to expand their business online to a great extent.
More & more use of mobile health solutions
Since mobile health systems and apps are launched, companies operating online have seen growth in their business. As mobile health becomes more widespread, accessing healthcare solutions have become more accessible.
Cost-effective solutions
Brick-and-mortar pharmacies have higher costs because many intermediates are involved in it. Online pharmacies do not involve any intermediate or third-party and therefore sell pocket-friendly products.
User-friendly approach
PharmEasy allows people to buy medicines or drugs at the touch with a single click. Therefore, the entire process is convenient and user-friendly.
Now that you know the business model of PharmEasy, you can invest in its shares and diversify your investment portfolio. To trade seamlessly, you can connect with Stockify, India's leading online broking platform. We have a team of experts who can help you buy and sell unlisted shares. From healthcare to retail, energy, technology, and finance, you can invest in unlisted shares of any company. Connect with us today.
FAQs
Que 1. What is the current price of PharmEasy unlisted shares?
Ans. PharmEasy unlisted share price today is Rs. 22.
Que 2. How do I buy PharmEasy unlisted shares?
Ans. Stockify is the leading online broking platform where you can easily buy and sell unlisted shares of any pre-IPO company.
Que 3. How much revenue did the company earn in the last year?
Ans. Last year the company earned INR. 5728 Cr revenue from operations as opposed to INR 2335 CR in 2021.
Que 4. What is the lock-in period of PharmEasy unlisted shares?
Ans. From the date of the acquisition, the lock-in period of PharmEasy unlisted shares is 6 months.
Que 5. Why should I trust Stockify to buy PharmEasy unlisted shares?
Ans. Stockify is the best platform to buy and sell pre-IPO shares. The company has a team of expert brokers who can make the process easy.
