Truemeds Achieves Rapid Growth Surpassing Rs 300 Crore in Revenue
Truemeds, a leading telehealth platform, has recently demonstrated impressive growth by exceeding Rs 300 crore in gross revenue for the fiscal year concluding in March 2024. This Mumbai-based organisation also managed to decrease its losses by 9% during the same timeframe.
According to financial statements submitted to the Registrar of Companies (RoC), Truemeds’ gross revenue doubled to Rs 315 crore in FY24, up from Rs 154 crore in FY23.
Overview of Truemeds Financial Performance
Founded by Akshat Nayyar and Kunal Wani, Truemeds empowers consumers to find alternative brand medicines by simply uploading their prescriptions. The revenue generated from sales of medicines and medical devices constituted 98.4% of the overall operating income, which soared by 102% to Rs 310 crore in FY24.
Additionally, income from shipping and packaging reached Rs 1.7 crore and Rs 2.8 crore respectively. The platform also accrued Rs 10 crore from interest on deposits, bringing the total income to Rs 325 crore in FY24, a considerable increase from Rs 161 crore in FY23.
Expenditure Breakdown
As a prominent telehealth platform, Truemeds observed that the costs associated with procuring medicines and devices comprised 67.8% of the overall expenditure. This expense rose significantly by 96% to Rs 262 crore in FY24. Moreover, employee benefits escalated by 75% to Rs 42 crore in FY24.
The overall costs surged by 74.7%, rising to Rs 386 crore in FY24 from Rs 221 crore in FY23, which included expenses related to advertising, rent, information technology, legal matters, and other overheads. For detailed expense analysis, please refer to various sources.
Loss Reduction and Financial Ratios
Truemeds’ substantial growth and judicious expenditure management allowed the company to cut its losses by 9%, reducing them to Rs 61 crore in FY24 from Rs 67 crore in FY23. On a unit level, expenditure was Rs 1.23 for every rupee earned in FY24. The Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin improved to -27.6% and -18.15% respectively. By the end of FY24, Truemeds had total current assets of Rs 253 crore, including cash and bank balances amounting to Rs 155 crore.
Funding and Market Position
Truemeds has successfully secured over $27 million in funding, including a $22 million Series B round led by WestBridge Capital in 2022. According to information from various startup data intelligence platforms, Info Edge is the largest external stakeholder, holding a 25.25% stake in the company.
Competitors in the market include PharmEasy, Tata 1mg, Netmeds, and Apollo 247, all of which pose a direct challenge to Truemeds.
The user-friendly interface and a tangible demand for lowering medical expenses have created substantial opportunities for numerous firms within this sector. Smaller pharmaceutical companies have begun to rely on these platforms as key distribution channels. Nonetheless, Truemeds faces challenges, including fierce competition and the potential for market interventions driven by lobbying from chemists. However, the company’s stakeholders will likely value the growth in revenue and the management of losses amidst these circumstances.