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Friday, July 12, 2024

Ratan Tata-Backed Generic Aadhaar raises funds for low-cost generic drugs

Generic Aadhaar would use the additional funds to expand its franchisee shop count to 3000 across India. It offers generic medications through a network of franchisees. It also provides franchise owners with invoicing and inventory management tools.

Beyond Next Ventures, a Japanese venture capital firm, has made an undisclosed investment in Generic Aadhaar’s current Pre-Series A financing round. After this round, the startup’s post-money valuation is INR 500 Cr.

The new funds would be used to increase the number of franchisee stores in India to 3000. The business will also expand its product offerings and invest in its digitalization plan.

According to the firm, it has diluted approximately 10% of its stock in the latest funding round.This cash, which we want to deploy over the next eight months, will allow us to develop quicker and have a greater effect by addressing the paucity of medications in urban, Tier 2 and Tier 3 areas across India. Following an overwhelming reaction from our clients, we want to raise a Series A financing over the next 8-12 months,” stated Arjun Deshpande, founder and CEO of Generic Aadhaar.

The current development follows Generic Aadhaar’s unnamed angel investment from Ratan Tata in 2020. Deshpande founded the Mumbai-based firm in 2018, which distributes generic pharmaceuticals through a network of franchisees. It also provides franchise owners with invoicing and inventory management tools.

Deshpande founded Generic Aadhaar at the age of sixteen to offer generic pharmaceuticals that are up to 80% cheaper than branded drugs on the market. Furthermore, generic drugs do not require market research or middlemen. The firm offers its items directly to consumers through franchise-owned stores, providing store owners with up to a 40% profit margin.

Generic Aadhaar claimed to manage over 1.5K franchise retail outlets in over 150 Indian cities in May. It also expected to open an additional 1,000 franchisee outlets in India during the current fiscal year (FY 22-23). Truemeds and Dava India are among its competitors in the pharmaceutical sector.

India is currently one of the leading exporters of generic pharmaceuticals, accounting for 20% of the worldwide pharmaceutical industry.

According to an IBEF estimate, the country’s pharmaceutical sector is expected to be worth $42 billion by 2021. The market is expected to reach $65 billion by 2024 and approximately $130 billion by 2030.

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