One of the largest venture capital firms in the world is in advanced negotiations to lead a major funding round in one of India’s top online pharmacies. Accel, known for early investments in companies like Facebook and Spotify, is reportedly in talks to invest $30-40 million in Truemeds at a valuation of around $330 million.
Truemeds is a six-year-old Mumbai-based startup that aims to provide affordable medication to customers across India. The platform allows patients to consult doctors, have prescriptions reviewed, and order generic alternatives to branded drugs – all through a digital interface. By eliminating middlemen in the supply chain, Truemeds says it can reduce medicine costs, particularly for those with long-term conditions.
The potential investment would more than double Truemeds’ valuation from its previous funding round last year. While online pharmacies in India saw rapid growth and high valuations in recent years, the market has since consolidated. Global asset manager Janus Henderson indicated Pharmeasy is now valued below $600 million, down significantly from a peak of over $5 billion.
If the deal with Accel is finalized, it would provide a major boost to Truemeds as it aims to scale its telemedicine and digital pharmacy services nationally. The startup operates solely online with contactless ordering, delivery and consultations – allowing it to penetrate remote and rural markets others cannot reach as easily. With affordable generic drugs and a streamlined digital supply chain, Truemeds appears well positioned for continued growth in India’s massive but price-sensitive healthcare sector.
