Now, online pharma cos explore diversification to monetise biz

Chennai: Online pharmacies are exploring alternate channels of monetisation.
With the help of data analytics gathered from operating solely as e-pharmacies, players such as Netmeds, 1mg and PharmEasy etc, are going a step deeper to add diagnostics and consultations into their basket of services.
Estimates by Frost and Sullivan add that the online pharmacy space is pegged at $512 million as of 2018.The agency also predicts a 63% CAGR for the sector.
One of the leading players Netmeds has recently forayed into diagnostics and telemedicine. For diagnostics, the startup would partner with service providers like Thyrocare etc to be a marketplace model. “Since April, we have introduced diagnostics and telemedicine on the platform with an aim to become a holistic player in the healthtech space,” said Pradeep Dhadha, co-founder, Netmeds. Alternate services currently form 2% of Netmeds total revenue.
An advantage that the online medicine stores have is the data and insights they have from years of supplying medicines about demographics and patients’ need for treatment and medicines. Dharmil Sheth, co-founder, PharmEasy adds that the startup has been running diagnostics and remote consultations since March and the services have gone live since a month. “Based on the data we have collected, we have insights on the customer needs and are launching services accordingly,” he said.
The company looks to grow 10 times over the next 2 years. Netmeds is also working on including insights that will help manufacturers gauge demand for the products, for a certain price point.
Industry analysts add that the early movers in the space are diversifying to face competition from Swiggy and e-commerce players who are entering the online pharmacy space. Arun Natarajan, MD, research firm Venture Intelligence adds that the with the foodtech startup’s pilot run in Gurugram, online pharmacy players need to diversify and have an alternate channel of monetisation to sustain. “Be it funding or their logistics strength, Swiggy is more powerful and has clearly mentioned their foray into medicine delivery. Branching out from being a mere medicine delivery platform to having more domain-based offerings makes sense for these people to sustain. Even investors may not look at a mere online pharmacy space once a player like Swiggy enters the area,” he added.
The move comes at a time when the government is finalising the draft regulations on e-pharmacies. Once regulations are formed several players would not be given a license and may be asked to cease operations. PharmEasy’s Sheth, however adds that they are will within the centre’s regulations and that delivering prescribed medicines would continue to be the core of their operations.