Truemeds is a Mumbai-based startup, founded in 2019. Just last week, it announced that it had raised $85 million in its latest funding round to scale its innovative model for making healthcare more affordable across India. This funding round ushers in $65 million in primary funding. Besides it, there is $20 million in secondary funding, led by Accel and with participation from Peak XV Partners. The investment further solidifies the increasing investor confidence in Truemeds’ mission to make healthcare affordable and accessible through its innovative technology-based platform.
The startup has developed a proprietary algorithm that recommends cheaper, generic alternatives to branded drugs. This innovation is having a dramatic impact on how today’s consumers access their medications. Truemeds has 10-12 million consultations annually. Every month, those customers carry out a million transactions, and over 3 million unique customers have now used their services to date! This remarkable progress is a testament to the increasing need for accessible and affordable health care alternatives. This shift is particularly pronounced among patients in tier-2 cities and beyond — home to more than 75% of Truemeds’ customers.
Innovative Approach to Healthcare
Truemeds operates on a simple yet effective premise: to recommend generic alternatives to consumers for the branded medicines they require. The startup uses technology to reduce friction in the prescription process and improve access to medications. Its second goal is to inform consumers about how much more cost-effective generics can be. The company has continued to develop its workforce of over 2,800 employees. 250 among them work in the Mumbai office, which allows seamless operations and delivery through over 20,000 postal codes in India.
“Because you get anchored to your prescribed brand’s price, and when you suddenly see a lower price, you want to know why it is low.”
Generating trust, Truemeds does this by explaining in detail. They work to prove their generic options work, and they implore patients to ask about these cheaper alternatives.
Commitment to Affordability
This is even more alarming as healthcare costs increase at an unprecedented rate. Against this tough backdrop, Truemeds is passionate about making medications affordable and accessible to all. The company’s primary mission reflects this goal, as highlighted by one of its co-founders:
“The primary mission remains the same, which is making healthcare affordable for the end user.”
The newly acquired funding will help Truemeds broaden its offerings and fulfil its mission of touching more lives. Nayyar further underlines the point that we shouldn’t prioritize delivery efficiency at the expense of all cost savings being passed on to consumers. He states:
“You’re able to do more planned purchases that way, but we want to do it in the most efficient manner, and pass more and more discounts to the end user rather than [focus on] the fastest delivery for that matter.”
It’s a win-win, letting patients use their judgement to decide where care is needed most, while enjoying substantial savings at the same time.
Looking Ahead
Having over 50% of its revenue net retained after 12 months, Truemeds is proving that even in a hot market, sustainable, profitable growth is possible. The startup’s ability to adapt and evolve in response to consumer needs positions it as a key player in India’s healthcare landscape. As the company continues to expand its services and reach more patients across the country, it remains focused on its core mission.
Nayyar acknowledges that education is crucial in helping consumers understand the value of generic alternatives:
“There is no way to educate the user that you can have more affordable options if you can’t afford these drugs.”
As Truemeds moves forward with its innovative solutions and robust funding support, it is poised to make a lasting impact on healthcare accessibility in India.
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