Mumbai-based PharmEasy, which offers diagnostic test booking services as well as drugs and wellness products online, raised $ 5.5 million (Rs 40 crore) from the investor in venture capitalist InnoVen Capital, a senior executive told TechCircle.
The company will use the amount for working capital needs and inventory, said Dharmil Sheth, who co-founded the company with Dhaval Shah in 2015.
“Debt is a great tool to use as working capital. We plan to use our equity for growth and not be held back by working capital requirements, ”added Sheth. Earlier this year, PharmEasy raised $ 30 million in a funding round led by existing investors Bessemer Venture Partners and Orios Venture Partners.
The release of the draft guidelines for the online pharmacy industry has also given the space a boost, Sheth said. The project requires online pharmacies to register with the Central Drugs Standard Control Organization. “The space in which we operate needs to be regulated and this is a good initiative of the government. However, there is a need to clarify the sharing of data and whether this affects patient privacy, ”said Sheth.
Other offers in space
The online pharmacy space has seen increased activity due to recognition by regulators.
NetMeds, one of PharmEasy’s competitors, had raised a $ 35 million Series C round in September.
In April, 1mg, headquartered in Gurugram, had raised new capital at a valuation of $ 75 million, and in March, Myra, backed by Matrix Partners, had raised $ 1.86 million from Dream Incubator, based in Tokyo.