Global venture firm Accel is in talks to lead a $30 million to $40 million funding round for Indian online pharmacy TrueMeds, six sources said. It is focused on providing customers with more affordable generic alternatives to brand-name drugs. .
Discussions are currently centered on a proposal to value the six-year-old Mumbai-headquartered startup at about $330 million, the person said, but the discussions are ongoing and private. Therefore, he requested anonymity.
The deal has not yet been finalized and may not yet materialize or its terms may change, the people cautioned. Axel and TrueMeds did not respond to requests for comment.
Truemeds' potential round comes at a time of consolidation and upheaval in the online pharmacy industry. Pharmagy, backed by Prosus Ventures, has struggled to repay loans to Goldman Sachs, and its valuation has plummeted from a peak of $5.6 billion to less than $600 million.
British-American global wealth firm Janus Henderson hinted that Pharmagy was valued at around $458 million at the end of June, according to its latest mutual fund disclosures. In 2021, Tata Digital acquired 1mg, another major player in this space.
Unlike its competitors, Truemeds takes a slightly different approach. The startup aims to disrupt the supply chain through which medicines reach customers, eliminating the middlemen who drive up the final price. When a customer uploads a prescription, Truemeds doctors recommend generic drugs made by Indian manufacturers that contain the same active ingredient. This service is aimed at reducing drug costs, especially for patients with chronic conditions that require ongoing treatment.
The platform operates entirely online and all consultations, orders and deliveries are handled digitally. This eliminates the need for patients to visit a physical pharmacy and allows Truemeds to reach customers in remote locations.
The new funding would more than double Truemeds' valuation from the $132 million it raised in an extended Series B round last year. The startup initially raised Series B funding from investors including WestBridge Capital and Info Edge Ventures at a valuation of $76.7 million, according to venture insight platform Tracxn.