Pharmaceutical startup Generic Aadhaar has secured private investment from Japanese VC firm Beyond Next Ventures in an ongoing pre-series A funding round. After this round, the startup’s post-money valuation is INR 500 Cr. According to the startup, it diluted almost 10% stake in the current round of fundraising.
Generic Aadhaar will use the fresh capital to expand the number of its franchise stores to 3,000 across India. The startup will also invest in its digitization strategy and expand its product offering.
Founded in 2018 by Arjun Deshpande, the startup sells generic drugs through its chain of franchises. It also offers invoicing and inventory management software to franchise owners.
At the age of sixteen, Deshpande launched Generic Aadhaar to sell generic drugs that are up to 80% cheaper than branded drugs in the market. In addition, generic drugs do not require research or intermediaries to market them. The startup directly sells its products to consumers through its franchise stores, offering store owners a margin of up to 40%.
Arjun Deshpande, Founder and CEO, Generic Aadhaar, said, “This fund, which we plan to complete deployment over the next eight months, will help us grow faster and create a broader impact by targeting drug shortages in Tier 2 and Tier 3 urban cities across India. After receiving an overwhelming response from our customers, we are looking to do a Series A round in the next 8-12 months.”
The latest development comes after Generic Aadhaar raised an undisclosed angel investment from Ratan Tata in 2020.
Generic Aadhaar claimed to manage more than 1.5 lakh franchised retail outlets in more than 150 Indian cities. Further, in this financial year (FY 22-23), it has targeted another 1,000 franchise outlets in India. In the pharmaceutical industry, it faces competition from the likes of Truemeds and Dava India.
Currently, India is one of the largest suppliers of generic drugs and accounts for 20% of the global pharmaceutical market.
According to the IBEF report, the country’s pharmaceutical market has been pegged at $42 billion in 2021. The market is likely to touch $65 billion by 2024 and further grow to nearly $130 billion by 2030.