India is one of the world’s largest medicine markets, with over 400 million chronic patients. While most e-pharmacies prioritize speed, affordability remains the real challenge. Truemeds took a different approach by helping patients switch to lower-cost substitutes, a strategy that is now paying off with new funding at about four times its previous valuation.
The six-year-old startup has raised $85 million in a new funding round, including $65 million in primary and $20 million in secondary funding, led by Accel with participation from Peak XV Partners. Existing investors WestBridge Capital and InfoEdge Ventures also joined the round. This fresh funding has boosted Truemeds’ valuation to over $400 million, up from $110 million in its last round two years ago.
Founded in 2019, Truemeds entered a crowded online pharmacy market where major players were offering steep discounts on branded generics. However, some of these companies struggled to sustain their early momentum. For instance, PharmEasy saw its valuation drop from a peak of $5.6 billion to under $600 million, while 1mg was acquired by Tata Digital. Instead of competing directly, Truemeds focused on a niche segment: generic medicines.
Truemeds co-founder Akshat Nayyar explained that the company’s mission was to educate users about more affordable alternatives. The Mumbai-based startup recommends generic substitutes for branded medicines, helping consumers save money due to the lower costs associated with generic drug development.
This strategy has proven successful. Truemeds’ revenue grew over 66% year-over-year to ₹5 billion ($57 million) in the last financial year. The startup retains more than 15% of its revenue after 12 months and serves an average of 500,000 customers monthly, with a total of 3 million customers to date. Over 75% of its customers come from tier-2 cities and beyond, and the company now serves more than 20,000 postal codes across India.
Despite its success, educating customers about generic alternatives remains a challenge. Many patients are anchored to their prescribed brands and question the lower prices of generic options.
While competitors have reduced discounts to focus on faster delivery, Truemeds has increased its average discounts from 29% to 32% in the last 12 months. Customers who switch brands on the platform save an average of 47% on their medicines. The company achieves these savings through deep procurement relationships with pharmaceutical manufacturers, using technology to improve demand visibility and production planning.
Truemeds operates its own logistics in major cities and partners with low-cost providers elsewhere. The company prioritizes affordability over speed, offering a four-hour delivery model that encourages planned purchases.
Looking ahead, Truemeds plans to enhance its AI-powered customization, using algorithms to suggest precise alternatives based on factors like manufacturing standards and patient needs. The startup also aims to expand into diagnostics, partnering with national pathology labs to pilot testing services in tier-2 cities.
The company is opening a Bengaluru office and dedicating at least 20% of its capital to engineering and product development. It also plans to increase its fulfillment centers by 300% over the next 12 months to strengthen its market presence.
Before this funding round, Truemeds had raised $50 million, with 30–35% still available. The startup employs 2,800 people, including 250 in its Mumbai office. Its primary mission remains making healthcare affordable, starting with medicines and expanding into diagnostics.