Online pharmacy Medlife said it expects to grow its revenues
by 50 percent and turn profitable in FY20, as the sale of medicines through internet pharmacies continue to surge.
Medlife said it crossed Rs 1,000 crore sales in FY19, and is eyeing to achieve overall sales of Rs 1,500 crore this year, with an exit run rate of Rs 2,000 crore over the next financial year.
Medlife's pharmacy segment grew three times from last year and the lab vertical contributed to about Rs 40 to 45 crore of the revenue.
While tier 2 and tier 3 cities are the fastest growing segments for Medlife, metro cities contribute to about 70 percent of the share.
As per a report by market research company Frost and Sullivan, the e-pharmacy market is valued at $450 billion to $475 billion, with Medlife having a 30 percent market share currently.
The company expects to have a 50 percent share of the pie in the next two to three years.
"While pharmacy remains our topline contributing to 75 percent of the revenue, the lab segment is also showing steady growth," said Tushar Kumar, Founder & CEO of Medlife.
"We also hope to double our run rate in the coming financial year and achieve a steady growth year-on-year (YoY) going forward,” Kumar added.
Kumar is the son of Prabhat Narain Singh, one of the founder-promoters of India's leading drug maker Alkem Laboratories.
Medlife started with an initial investment of $15million, and later received funding of $30 million from family capital and promoters.
The founders are planning to pool in another investment of about $65 million from the family.
Currently, Medlife makes over 20,000 deliveries daily across 29 states in over 4,000 cities and 25,000 pin codes in India.
Medlife’s diagnostic lab services are currently operational in Bengaluru, Mumbai, Delhi NCR, Kolkata, Jaipur, Pune, Kanpur, Lucknow, and Hyderabad; and will be extended to other locations going forward.
The company also aims to open their first offline store in Mumbai and launch their first-ever diagnostic lab in Bengaluru.