Mumbai-based medtech startup Generico has raised $3 million in Series A funding from Tomorrow Capital and Whiteboard Capital, along with angel investor Gagan Goyal.
Generico sells generic medicines through its 20 physical pharmacies across the city. With the freshly raised round, Generico plans to expand to 100 cities including Pune, and a few cities in Gujarat. According to media reports, founder Siddharth Gadia says this expansion will take place over the next 10 months.
The company sells generic medicines at 80 percent discount and branded medicines are available for 15 percent lesser price. It also provides a subscription service where a customer gets to avail 15 percent additional discount.
In order to have a sustainable business model, the startup said it plans to raise more funds in the near future. Generico believes that consumers can save up to 80 percent by switching to generic medicines. According to the company website, a generic medicine is an equal substitute for its brand-name counterpart.
According to media reports, Rohini Prakash of Tomorrow Capital told the media that there will be a movement from the unorganised to the organised sector, applicable to the retail pharmacies as well, and they believe the Generico team has the potential to build a scalable and valuable business. The startup's business model will be able to reduce the out-of-pocket expenditure on healthcare, he added.
Having a very similar model is government-backed Jan Aushadhi Scheme. It provides low-cost medicines to customers, but the supply, however, is controlled by the government. Generico's Siddharth Gadia focuses on regions where Jan Aushadhi stores are not available in the vicinity.
Generico's medicines are sourced from government approved manufacturers, thus ensuring quality, said a release. Besides having brick-and-motor outlets, the company also allows customers to order medicines over WhatsApp and phone calls, the delivery for which is done within six hours from when the order is placed. In case of customer dissatisfaction, the company takes returns and refunds the money back to the customer, within 30 days of sale.