Truemeds, a telehealth platform, is raising Rs 375.2 crore which comes to about USD 44 million) in its Series C round, which is led by Accel India and includes WestBridge and Info Edge. Truemeds' board has passed a special resolution to issue 1 equity and 49,300 Series C preference shares at an issue price of Rs 76,110 each to raise the aforementioned sum, according to its regulatory filing with the Registrar of Companies (RoC).
Accel India will invest Rs 285.4 crore, while WestBridge's investment vehicles Konark and MMPL Trust will contribute Rs 68.49 crore. Info Edge will also participate in the round, investing Rs 21.31 crore. According to filings, the company will use the proceeds to advance the business and facilitate its planned growth. Entrackr estimates that the company will be valued at around $340 million (post-money).
With the new funding, Accel India will own about 10% of the company, while WestBridge and Info Edge will own 28.64% and 23.02%, respectively. Akshat Nayyar and Kunal Wani, co-founders, will retain a personal stake of 22.43%.
Truemeds, founded by Nayyar and Wani, allows consumers to find medicines from different brands using prescriptions that they have uploaded. Furthermore, Truemeds' revenue more than doubled to Rs 315 crore in the fiscal year ended March 2024. Efficient cost management and scaling efforts also contributed to a 9% reduction in losses, which fell to Rs 61 crore over the same period.
Awareness of generic medicines is rapidly increasing in India, thanks to government-backed efforts to provide cheaper medications at both the state and federal levels. While this has created a market for users seeking alternatives to prescribed options, it also presents Truemeds with its most significant challenge. Truly successful government efforts will stifle growth in many of the high-volume categories. However, with government efforts focusing on specific, high-usage molecules, there is still room for companies like Truemeds to capitalize on the increased awareness of options.
That appears to be the thesis of the most recent funding, at least. Whether it's vitamins and supplements or homeopathic medications, the company has a diverse selection to offer users looking for a lower price point. However, competition remains fierce, both from government-backed pharmacies and private pharmacies that have also adapted to the new reality of a shifting market.
