Tomorrow Capital exits Mumbai-based generic drugs seller ZenoHealth
Tomorrow Capital on Wednesday said it sold all its shares in ZenoHealth, a Mumbai-based pharmacy chain which sells low-cost generic drugs, two years after investing in the startup.
Tomorrow Capital had invested about Rs 13 crore in ZenoHealth's (previously known as Generico) pre-Series A round to aid in its expansion, develop and refine its marketing plan, as well as establish itself as a strong brand, the investment firm said.
The investment firm said that about 70 percent of a patient's overall health expenditure goes towards purchase of medicines, especially for non-hospitalised treatments. This helped convince it to invest in ZenoHealth, which had been spreading awareness and making "quality generic medicines at reasonable prices" available.
"As active investors, we believe in driving the value of the entities we invest in through a capital + approach and a hands-on role in helping young businesses scale. With ZenoHealth (previously Generico), we had the right set of founders and a business at the right stage. The pace at which the company has grown has validated this way of operation in our minds," Rohini Prakash, CEO of Tomorrow Capital said about the exit.
Details of the deal value were not disclosed.
An early-stage investment firm backed by Abhinandan Lodha of the Lodha Group, Tomorrow Capital has invested or committed nearly Rs 100 crore over the last three years in startups including Bonito Designs and Multiliving Technologies, and has earmarked a further Rs 100 crore to invest in early-stage consumer startups over the next 12 months.
ZenoHealth was founded in 2017 by Siddharth Gadia and Girish Agarwal, both alumni of IIT Bombay. Currently present in Mumbai, Thane and Navi Mumbai, the startup plans to expand from 60 stores to 150 stores by 2021.
It has raised $16 million in equity funding so far from investors including Lightbox, which put in $14 million in its Series A round.