Online Pharmacy Medlife Raises Over INR 173 Cr From Two Entities

Bengaluru-based online pharmacy Medlife has raised a total of INR 173 Cr from various investors. Portions of the amount have been raised by allotting secured, redeemable, Non-Convertible Debentures (NCDs) as well as Optionally Convertible Redeemable Preference Shares (OCPRS). While INR 5 Cr has been raised in debt from SC Credit Fund, the remaining amount of over INR 167 Cr has been raised in two tranches from the Prasid Uno Family Trust. 

According to filings with the Ministry of Corporate Affairs accessed by Inc42, Medlife, on July 3, allotted 50 NCDs, at a nominal amount of INR 10,00,000 per share, amounting to a total of INR 5 Cr, to SC Credit Fund. 

In March, the company allotted 1,25,270 OCPRS at a nominal amount of INR 100 per share and a premium of INR 11,754 per share, aggregating to INR 148,49,50,580, to Prasid Uno Family Trust. Finally, in February, the company allotted 16,871 OCPRS at a nominal amount of INR 100 per share and a premium of 11,754, aggregating to INR 19,99,88,824, to Prasid Uno Family Trust. 

Medlife was founded in 2014 by Tushar Kumar and Prashant Singh as an inventory-led epharmacy and helps doctors digitally manage and store patient records. However, it gradually diversified to online doctor consultations, wellness products and laboratory services. 

Medlife Raising Money From Founders’ Family-Owned Trust

Medlife founders Kumar and Singh are directly connected with one of the company’s major investors over the years, the Prasid Uno Family Trust. Kumar is director and trustee for Parsid Trust while Singh’s wife Surabhi Singh is also one of the directors. 

On the other hand, the SC Credit Fund is owned by Samena Capital, a principal investment group focusing on the Subcontinent, Asia, the Middle East and North Africa. 

According to an Inc42 report from January this year, Medlife’s revenues for FY19 were at INR 364.67 Cr while expenses were INR 768.36 Cr. Hence, the company’s losses amounted to INR 403.6 Cr.

Previous Funding For Medlife

In December last year, Medlife raised $15.5 Mn (INR 110 Cr) from Wilson Global Opportunities Fund in a debt funding round.

Medlife had said that it would utilise the funds in the development of technology, marketing, employee expenses and to support the future growth of the company, according to media reports.

In April of the same year, the company raised INR 118.95 Cr ($17 Mn) in an equity funding round from founder Tushar Kumar’s family trust, Prasid Uno Family Trust.

In May of the same year, Medlife acquired Bengaluru-based medicine delivery startup Myra Medicines for an undisclosed amount. It was said that the acquisition would support Medlife’s pharmacy business and help it accrue profits. At the same time, Medlife would consolidate and strengthen the delivery of medicines and extend the reach to more Indian cities.

Indian Online Pharmacies

Medlife competes with 1MG, NetMeds and PharmEasy, among others, in the online pharmacy segment. 

Between 2014 to 2019, out of the total $2 Bn invested in Indian healthtech startups, 22.4% (462 Mn out of $2 Bn) was poured into online pharmacy startups such as Medlife, 1Mg, Pharmeasy and Netmeds, who are also the top players in the sector, according to India’s healthtech landscape report. 

The post Online Pharmacy Medlife Raises Over INR 173 Cr From Two Entities appeared first on Inc42 Media.


Author: Harshit Rakheja

Source : https://inc42.com/buzz/online-pharmacy-medlife-raises-over-inr-173-cr-from-two-entities/


Date : 2020-08-13T14:21:31.000Z

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