PharmEasy’s Revenue Model: An Income Churning Machine!

PharmEasy earns by displaying sponsored ads of various pharmaceutical brands. Advertising is the major source of revenue for this clever e-pharmacy and it capitalizes on it to the hilt. The ads that are displayed on PharmEasy’s platforms (website and the app) are picked from the homepages of various brands it is going to display. On top of that, PharmEasy also offers some value-added services such as medicines reminders, reminders for refilling and providing helpline contacts.

Some of the smart moves in marketing

In addition to offering discounts on its website, PharmEasy has also tied up with various mobile wallets to provide discounts on medicines and various over-the-counter products.
PharmEasy has used various forms of media such as AC Bus Wraps Ads, billboards, hoardings, Metro Trains Wrap Ads, and even bus panels. In addition to media, the company also used below-the-line activation campaigns such as residential welfare campaigns like health camps to promote its brand.

Print and broadcast media campaigns were also used to explain the ease of using an online pharmacy. Moreover, Twitter was extensively used as the brand’s official social media channel.

What gaps is PharmEasy trying to fill?

PharmEasy founder Dharmil Sheth stated in one of the interviews that they started the e-pharmacy platform to make healthcare services affordable and accessible to all. Earlier, no platform could connect patients or a customer to authentic healthcare services. This is where the founders saw a huge gap in the healthcare industry. Though people could buy cosmetics, stationary and even purchase retail properties online, no platform could deliver medicines to the customers. There was a need for someone to deliver the medicines at the doorsteps of the patients so that they did not have to walk down the road to look for medicines or healthcare products. Patients are usually dependent on their families for their well-being and support. This is where PharmEasy tried to make space for itself. The founders thought of intuitive ways to help the patients in as many ways as possible. They wanted their product to be more than just a delivery service. Now, the platform has started to suggest its users undergo different lifestyle changes and perform certain activities so that they can avoid certain diseases and ailments. The idea was to make the platform act like a “family member” and take care of its patients. Furthermore, the platform pushed to make the relationship between the patient and the chemist intimate instead of transactional by using an efficient system that identified pharmacies that were closest to their customers.

Creating ‘Digital Entrepreneurs’

According to the founders, the most special thing about Meesho platform/app is that it allows any person to be an entrepreneur without any investment, from the comfort of their homes. It’s a ‘zero investment’ proposition which creates ‘digital entrepreneurs.

How does the app work? To begin with, starting a business on Meesho app doesn’t require any investment or qualification. The start-up follows the concept of reselling. Once the user enters the app, there is a well-established catalogue of products ranging from clothing to kitchen equipment. All a user needs to do is resell those products to their contacts by sharing the catalogue to friends, family or others on various social platforms such as WhatsApp, Facebook, Instagram, Twitter and generate sales. A commission is earned on every order besides bonuses.

Users also have the option of listing their own products by enrolling into Meesho’s seller account following which they can broadcast themselves on various online social groups and start earning.

Building this app was not easy. Like every start-up, Meesho founders had their share of struggle during the initial days, right from developing the app to deciding on the language. But every decision they made, it was taken in the direction of creating a ‘user-focussed’ business. The start-up wanted to reach out to as many sellers as possible during their early stage itself to get the head start without any risk.

Around 10% of Meesho users are influencers on Instagram and Youtube who are able to make a handsome income by reselling products on the platform. A large chunk of their users also consists of women and students, who are usually very active on social media and are thus able to leverage the opportunity, following small store owners in Tier 2 and Tier 3 cities.

In an interview with Y-Combinator, a California-based seed accelerator, Aatrey had mentioned that they imbibed a lot of patience, especially during the initial days and hired like-minded people from their own network. He terms this as the “single best decision” of his life while reinstating the value of having a strong foundation.

In 2016, the start-up was one of the three Indian companies to be selected by Y-Combinator for a three-month summer programme besides being a part of the first batch of Google Launchpad – Solve for India program.

Meesho secured its first funding of $120,000 from the california-based seed accelerators. Since then, the start-up has raised a total of $515.2 million in funding over 9 rounds; the latest one being Series E in April 2021 which gave the six-year-old start-up a valuation of $2.1 Billion and an entry into the prestigious unicorn club.

In June 2019, Meesho became the first start-up from India to receive an investment from Facebook. The start-up managed to grab the Big Tech’s attention due to its target audience—women and students— and their common goal of enabling small communities and businesses to grow. This partnership was also a part of the tech giant’s strategy to expand its presence in the rising internet market. Facebook has more users in India than it does in any other country and the number is on a steady rise. With India emerging as the second biggest smartphone market, the opportunity is immense.