Medlife hits Rs 100 core revenue milestone in September
CEO Narayanan says the Bengaluru-based company is on track to break even on unit economics level within the next 6-8 months.
“We are on a very good growth trajectory, north of 8%-9% month-on-month growth. We hit a milestone of Rs 100 crore, which we feel very good about, having also served 500,000 customers and recorded about 800,000 deliveries in September,” Ananth Narayanan, chief executive of Medlife, told ET.
The improved performance comes on the back of strong financials reported across the board by India’s top four online pharmacies — Medlife, PharmEasy, Netmeds and 1MG — for the financial year ended March 31, 2019.
In April, Tushar Kumar, co-founder of Medlife, told ET that the Bengaluru-based company had seen sales grow to nearly Rs 700 crore in fiscal year 2019 and was targeting a topline of Rs 1,400-1,500 crore in the current financial year. The company clocked sales of Rs 90 crore in March alone.
“We are also on track to become unit economics breakeven over the next six to eight months…Every month, we have improved it by over 1%… This combination of getting 8% growth, improved unit economics and improved consumer experience, is very difficult to pull off all together,” Narayanan said.
According to the CEO, Medlife is currently doing upwards of 25,000 orders daily, with an average order value of Rs 1,400. A recent report by RedSeer Consulting stated that India’s top four e-pharmacies contributed 90% to online drug sales. The average order value across the sector has gone up to Rs 1,200 with customers ordering on average 10 times per year.
Narayanan joined Medlife as chief executive in August, and was also given a co-founder tag, in the process becoming the first professional CEO to head the five-year old company. Prior to joining Medlife, the former McKinsey executive had led the Flipkart-owned fashion portal Myntra for almost four years.
According to Narayanan, the company has doubled down on technology to improve efficiency across the board, with a primary focus on its customer facing app, using artificial intelligence and machine learning to forecast inventory more accurately, improve its subscription models along with its product mix.
“Operationally, we have gotten lot better… We are using data, AI and ML to predict better - what the customer will buy, as well as what stock is where,” Narayanan said, adding that the company will continue to add to its technology team, particularly in data science and engineering.
Medlife, which along with PharmEasy, have emerged as the two largest online pharmacies in the country in terms of revenue, is also in the process of further building its infrastructure. The company currently has about 39 centres, of which three have been set as hubs in Mumbai, Delhi and Bengaluru. The company also acquired Bengaluru-based medicine-delivery startup Myra in an all-stock deal in May, allowing it to undertake express delivery to customers.