Truemeds raises $85M to target non-metro markets

Epharmacy and telehealth platform Truemeds has raised $85 million in Series C funding to accelerate its push into smaller cities and towns.

The financing, completed in two tranches, was led first by Accel and later by Peak XV Partners, with continued backing from WestBridge Capital and Info Edge Ventures.

The Mumbai-based company said the capital will go toward tripling its national reach by adding fulfillment centers in high-demand non-metro markets, hiring top-tier engineering and product talent, and opening a new technology hub in Bengaluru.

Founded in 2019 by Akshat Nayyar and Dr Kunal Wani, Truemeds specialises in chronic care medicines, using a proprietary algorithm to recommend lower-cost, clinically equivalent alternatives to branded drugs. The company claims patients can save 50% to 70% on monthly bills, a proposition that has helped it notch more than 100% year-over-year growth.

India’s shifting demographics underpin the business case. About 21% of the country’s 158 million elderly live with at least one chronic illness, with prevalence as high as 29% in cities. The company’s founders say affordability remains a major barrier, particularly outside metros, where consistent access to quality medicines can be patchy.

“Our vision is simple—to bring the lowest prices for medicines in India while ensuring every patient gets the quality they can trust,” Nayyar said. “With this funding, we’re ready to strengthen our foundation, grow our offerings, and reach deeper into non-metro regions.”

Alongside its core prescription drug business, Truemeds is expanding into diagnostics, with pilot services slated for four cities over the next two quarters. The firm recently launched an iOS app and plans to use AI- and machine learning-powered tools for personalised patient journeys and demand forecasting.

The company currently works with about 600 doctors daily and employs 3,000 staff across fulfillment centers and offices. In line with the growing trend of wealth creation in Indian startups, it has rolled out an ESOP buyback program for employees.

“Affordability continues to be a major barrier—especially in chronic care,” said Abhinav Chaturvedi, partner at Accel. “Truemeds is bridging this gap with a clinically guided, technology-led platform that delivers transparency and accessibility at scale.”

India’s fast-growing generic drug platforms are riding a wave of rising healthcare costs and shifting consumer habits, as patients turn to cheaper alternatives to branded medicines. Sitting at the crossroads of e-pharmacy and cost-conscious healthcare, these companies source off-patent drugs from licensed manufacturers and deliver them directly to consumers, often at discounts of 50% or more.

Much of the demand comes from patients managing chronic conditions such as diabetes, heart disease and respiratory ailments, where medication costs can add up quickly and adherence is critical.

Netmeds, acquired by Reliance Retail, has been expanding its logistics network and widening its product mix to include more generics. PharmEasy, one of India’s largest digital health firms, is pushing deeper into generic substitution while pairing it with diagnostics and teleconsultations. 1mg, majority-owned by Tata Digital, sells both branded and generic drugs, leaning heavily on consumer education and price transparency to drive adoption.

Smaller players are making inroads by targeting underserved areas. Medkart, which bills itself as a generic-first pharmacy, and Saveo, a B2B marketplace supplying generics to independent chemists, are focusing on semi-urban and rural markets. Both use hybrid models, blending online ordering with physical pharmacy networks, to build trust and improve availability.

The sector has been undergoing consolidation, with big corporate houses and large marketplaces acquiring smaller platforms to expand distribution. However, price regulation under India’s National List of Essential Medicines (NLEM), tighter e-pharmacy guidelines, and the need for compliance with drug sourcing standards are reshaping competitive strategies.