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With over 400 million chronic patients<\/a>, India is one of the world\u2019s largest medicine markets. But while most e-pharmacies chase speed, affordability remains the real challenge. Truemeds<\/a> took a different route: helping patients switch to lower-cost substitutes, a bet now paying off with new funding at about four times its previous valuation.<\/p>\n The six-year-old startup has raised $85 million in a new round that includes $65 million in primary and $20 million in secondary funding led by Accel, along with participation from Peak XV Partners. TechCrunch first reported on Accel\u2019s talks<\/a> to back Truemeds last year. Existing investors WestBridge Capital and InfoEdge Ventures, also participated.<\/p>\n The fresh round has boosted Truemeds\u2019 valuation to over $400 million, up from the $110 million in its last round two years ago.<\/p>\n Founded in 2019, Truemeds entered the market at a time when India\u2019s online pharmacy space was already crowded with major players offering steep discounts on branded generics. But some of those companies struggled to sustain early momentum \u2014 Prosus Ventures-backed PharmEasy, for instance, saw its valuation drop from a peak of $5.6 billion to under $600 million<\/a>, while 1mg was acquired by Tata Digital<\/a>, part of the Tata Group. Instead of competing head-on, Truemeds\u2019 founders chose to focus on a relatively niche segment: generic medicines.<\/p>\n \u201cThere is no way to educate the user that you can have more affordable options if you can\u2019t afford these drugs,\u201d said Truemeds co-founder Akshat Nayyar (pictured above, left) in an interview. \u201cThat is where we felt that nobody in the value chain was working towards that, and we can bridge that gap.\u201d<\/p>\n The Mumbai-based outfit recommends generic alternatives to consumers for the branded medicines they need. This eventually helps consumers save money, as generic drugs are typically more affordable than their branded versions due to cost efficiencies in their development process.<\/p>\n Truemeds says its differentiated approach has paid off, with revenue growing over 66% year-over-year to \u20b95 billion ($57 million) in the last financial year. The startup says it retains more than 50% of its revenue after 12 months and now serves an average of 500,000 customers each month, with a total of 3 million customers to date. Moreover, it says it now serves over 20,000 postal codes across the country, with more than 75% of its customers coming from tier-2 cities and beyond.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> However, educating customers about alternatives to their prescribed medicines \u2014 and convincing them to switch from branded drugs to generics \u2014 remains a challenge.<\/p>\n \u201cBecause you get anchored to your prescribed brand\u2019s price, and when you suddenly see a lower price, you want to know why it is low,\u201d Nayyar told TechCrunch.<\/p>\n While today\u2019s e-pharmacies chase speed over savings, the sector\u2019s early playbook was different. Online pharmacies in India used to offer discounts of up to 25% to attract customers. But Nayyar said this dropped to 20% and then 15% \u2014 the new average \u2014 as most burned cash to acquire new customers and pivoted to faster delivery as their main differentiator.<\/p>\n Truemeds has gone in the opposite direction, increasing its average discounts from 29% to 32% in the last 12 months. For an average user who switches brands on the platform, savings reach 47% on their medicine, says the company.<\/p>\n This comes from Truemeds\u2019 deep procurement relationships with pharma companies, where the startup uses its technology to give manufacturers better demand visibility, helping them plan production more efficiently for upcoming quarters, he said.<\/p>\n The startup also relies on its own logistics in some of the major cities it operates in and uses low-cost logistics partners for the rest.<\/p>\n \u201cWe believe that our four-hour delivery model is more than sufficient from a chronic patient\u2019s perspective,\u201d said Nayyar. \u201cYou\u2019re able to do more planned purchases that way, but we want to do it in the most efficient manner, and pass more and more discounts to the end user rather than [focus on] the fastest delivery for that matter.\u201d<\/p>\n As Truemeds needs to convince customers to choose generics over branded medicines, it goes through deeper consultations with them. It already conducts 10-12 million consultations per year. The startup has developed an algorithm over the years that looks at various parameters to precisely suggest alternatives to the branded drugs a customer demands. It considers nuances such as whether the medicine is sugar-coated if it is for a young patient, where it is manufactured, and whether the plant is GMP-certified, among others. The startup also has a chatbot to address some user queries quickly.<\/p>\n Much more is on the roadmap. The company plans to develop an AI-based system that customizes conversations based on customers\u2019 behavior and previous interactions with generic alternatives. It\u2019s also opening a Bengaluru office while dedicating at least 20% of its capital to engineering and product development.<\/p>\n Beyond medicines, Truemeds is plotting to enter diagnostics through partnerships with national pathology labs, planning to pilot lab testing services in some tier-2 cities in the next three to four months.<\/p>\n \u201cThe primary mission remains the same, which is making healthcare affordable for the end user,\u201d the co-founder said. \u201cIt started with medicines. Now that the model is getting established, we are going to keep scaling that. Simultaneously, we also want to see if we can do something similar on the diagnostics front, where we can be the lowest cost provider of at least the most common tests.\u201d<\/p>\n The startup also plans to increase its fulfillment center count by 300% \u2014 from 19 currently \u2014 over the next 12 months, aiming to deepen its presence in existing markets.<\/p>\n Before this round, Truemeds raised $50 million and still has 30\u201335% of that capital in the bank, Nayyar said.<\/p>\n The startup has a workforce of 2,800 people, with 250 based in its Mumbai office.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\nIncreasing discounts while competitors cut back<\/h2>\n
Next up: AI-powered customization and doorstep diagnostics<\/h2>\n