Accel eyes stake in India’s Truemeds at $330 million valuation

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In line with half a dozen sources, Accel, the worldwide enterprise agency, is in superior discussions to guide a funding spherical of $30 million to $40 million in Truemeds, an Indian on-line pharmacy that’s targeted on offering clients with extra reasonably priced generic alternate options to expensive branded medicines.

The talks are at the moment centered on a proposed valuation of about $330 million for the six-year-old, Mumbai-headquartered startup, per these similar sources, who requested anonymity because the deliberations are ongoing and personal.

The deal hasn’t finalized, so it might nonetheless not materialize or the phrases can change, the sources cautioned. Accel and Truemeds didn’t instantly reply to requests for remark.

The potential spherical for Truemeds comes amid a interval of consolidation and upheaval within the on-line pharmacy business. Pharmeasy, backed by Prosus Ventures, has seen its valuation plummet from a peak of $5.6 billion to beneath $600 million after struggling to repay a mortgage to Goldman Sachs. 

Janus Henderson, the British American world asset agency, implied a valuation of about $458 million for Pharmeasy on the finish of June, in accordance with its most up-to-date mutual fund disclosures. In 2021, Tata Digital acquired 1mg, one other main participant within the house.

Not like its rivals, Truemeds is taking a barely totally different method. The startup goals to disrupt the availability chain of how drugs reaches clients, eliminating middlemen that inflate the ultimate value. After clients add their prescriptions, Truemeds docs advocate generics with the identical lively substances, produced by Indian producers. This service goals to scale back remedy prices, notably for these with continual situations requiring ongoing therapy.

The platform operates totally on-line, with consultations, ordering, and supply all dealt with digitally. This eliminates the necessity for sufferers to go to bodily pharmacies and permits Truemeds to succeed in clients in distant areas. 

If the brand new funding materializes, it might greater than double Truemeds’ valuation, which was $132 million in an prolonged Sequence B spherical final 12 months. The startup initially raised the Sequence B funding from buyers together with WestBridge Capital and Data Edge Ventures at a valuation of $76.7 million, in accordance with Tracxn, a enterprise perception platform. 

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