Product Management

Certification Program
Assignment: Competitor
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Analysis Name: Vikrant Jain
Industry: Online Medicine

Email:
vikrantjain@outlook.com
 PharmEasy
Competitive Analysis
Contents
Contents
Online Medicine Space
PharmEasy- Overview
Introduction of PharmEasy
PharmEasy : Direct and Indirect Competitors.
Comparison Background : PharmEasy and Medlife
Comparison: Business Model, Product Services, Geography coverage
Comparison: Financials
Comparison: Strength and Weaknesses
Comparison: Apps, User Experience
Potential Future Initiatives /recommendation for Medlife.
Summary
Annexures: Referred Websites, Assumptions
Online Medicine space

Overview of Online Medical Space

Current Market $360 Million

Market projection $2.7 Billion by 2023

Key Business Drivers Growing Internet penetration and Smart phone users.

 Online Pharmacy [ Chronic, Acute Medicines ]

 Doctor Consultation,
Business segments
 Home Diagnostic Tests,
 OTC Medicines, AYUSH Products.

Challenges Government Regulations; restrictions on sale of certain type of Drugs.

Online Medicine space
PharmEasy

Founded in 2015, by Dhaval Shah and Dharmil Sheth, and headquartered in Mumbai, PharmEasy started with a vision to make
healthcare accessible and affordable through a quick and doorstep service.

At Present PharmEasy provides-

 Doorstep medicine delivery, covering 1000+ cities and over 22,000 Pin codes across India.
 At-home sample collection for diagnostic tests in Metro and major cities like Mumbai metropolitan region, Delhi NCR,
Chennai, Bengaluru, Kolkata etc.

It has raised close to $300 Mn funding so far and employs over 600 people. The company’s current market valuation stands at
$700 Mn. At present its annual revenue is estimated to be close to $40 Million.
 Direct Competitors Indirect Competitors
Offline Medical stores, Diagnostic labs, E-commerce
Online Pharmacy, Home diagnostic tests, Doctor
websites that can offer Health Products, OTC
Consultations
medicines

Key Competitors

Others

Medlife is Chose for comparison purpose in subsequent slides

Background Comparison : PharmEasy and Medlife.

Make healthcare accessible and affordable through a Improve health outcomes for consumers by making it
Vision
quick and doorstep service. simple, personal, accessible and affordable
Use technology to make Medlife the trusted partner for 100+
Mission Not Found
million customers for all of their healthcare needs.
Employee (LinkedIn) 681 1251
Funding $397 Million $182.6M
Revenue (2019) $41** $50.7

Founded in 2015 2014

Founders Dhaval Shah and Dharmil Sheth Tushar Kumar and Prashant Singh
Current Market share 20-25% 20-25%

Acquisitions None found.

Target Markets Smartphone users, Metro Cities. Working class who prefer to buy on internet.

PharmEasy and Medlife started almost at same time and currently have similar market share in Online Medicine space.
Comparison : Business Model, Offerings and Geographical spread

Who is Winner
Business Models Product/ Services/ Coverage
in category

Medicine Products 100K+ SKUs ● 100K+ SKUs ● Same or Similar

Online Pharmacy Health Products + Ayush 25,000+ ● 25,000+ ● Same or Similar
Cities, Pin Codes 1200+, 22,000 ● 4000+, 25,000+ ● Same or Similar

Doctors on (In house) No Information ○ 80 ◑ Medlife

Doctors Enrolled No Information ◔ 1000 ◑ Medlife

Doctor Consultation
Specialties No Information ◔ 30 ◑ Medlife
Cities Covered No Information ◔ 21 ◑ Medlife
Diagnostic Tests Services Available ● Available ● Same or Similar
Home Diagnostic Test
Cities Covered 40+ Cities ◔ 200+ Cities ◑ Medlife
Affiliate Model Not Available ○ Available ◔ Medlife
Franchise Model Not Available ○ Available ◔ Medlife
Other VAS
Express Delivery option Not Available ○ Available ● Medlife
Return Policy 30 days ● 30 days ● Same or Similar
Loyalty Benefits Not Available ○ Not Available ○
Monthly - Subscription Model Available ● Available ● Same or Similar

 In terms of Variety of Offerings, Value added Services ; Medlife has advantage over PharmEasy.
Business Model Comparison- Financial Strength
YOY Revenue YOY Losses Funding Average Order Value/Freq

Revenue Losses External Funding Average Order Vaue

120 160 (INR)
600 970
Revenue (Mn-USD)

100 140 397 1000

820

Revenue (Mn-USD)
120 400
80 182 800
100 200
60 600
80 AOV
40 0
60
20 FY-19 Pharmeasy Medlife
40
0 20 PharmEasy Medlife
FY-
FY17 FY18 FY19 0 Average Order Frequency
20** FY17 FY18 FY19 FY-20**
PharmEasy 5 17 41 104 PharmEasy 7 14 28 57 1.6
1.5
Medlife 6 19 52 104 Medlife 0 23 58 141 1.5
1.4
1.4
1.3
AOF

Pharmeasy Medlife

YOY Revenue YOY Losses Funding Order Booking

Assessment  Both PharmEasy  Based on Guesstimation though  Though Medlife had strong  Compared to Medlife,
have been growing both PharmEasy and Medlife are Financial backing from PharmEasy is generating
more than 2x YOY having losses; Medlife Losses are Founders, PharmEasy has higher revenue per
and generating relatively higher. This could be generated more interest customer.
similar revenue because of the acquisitions that still from External VCs.
need to provide revenue.

Who has
Edge
Strength and Weaknesses

Strengths Strengths
 Good Financial Backing by Investors like Temasek, Eight  Though less than 20%,Business is not dependent only on
Roads, F’Prime. Medicine/Pharmacy product deliveries.
 Though company is growing , it seems to be managing Finances  Has already invested in companies using AI in Healthcare,
well in compare to competitors. which should help Company to face entry threats from players
 App Interface is easy. like Amazon.
 Founders have backing from Pharmaceutical groups; Funding
entirely not dependent on VCs

Weakness Weakness
 . Currently Only Medicine / Health Product Business is main  Losses are higher.
vertical, which has strong competition.  Low Average order Value booking compared to competition.
 Players like Amazon, Swiggy enters into this market; they can  Limitation on expansion as based on Government regulations.
quickly win over.
 Delivery Inconsistencies, No express Model.
 Incident of wrong Shipments.
 Limitation on expansion as based on Government regulations.
Comparison : User Experience
5M+ Downloads
App Ratings

 Pain Points 
4.6
4.5 4.5
Delighters
4.4
4.3
 Good Discounts  Delivery Time Inconsistencies.
Rating

 App User Interface (Easy)  Incident of wrong Shipments

4.2
4.2  Number of SKUs/Products
 Easy Cancellations.

4
 PharmEasy to focus on reducing delivery inconsistencies and reduce
Android iOS
delivery time.
PharmEasy 4.5 4.5
Medlife 4.3 4.2

Number of Reviews 5M+ Downloads

200000 190000
170000
175000
150000
125000
Delighters  Pain Points 
Reviews

100000
 Good Discounts  App getting stuck/ hang Issues.
75000
 Number of Product SKUs  Customer Helpdesk- not helpful
50000
25000 12000 11000
 Express Model (2Hrs)- Few SKUs  No Chat Facility
0
 Deliveries commitments met.
Android iOS
PharmEasy 170000 12000
Medlife 190000 11000  Medlife to focus on reducing technical glitches of Apps.
Potential Future Initiatives/Suggestions for Medlife.

Foray into Offline Stores or Pharmacies in Hospitals.

 Similar to Lenskart , Medlife could venture into creating offline stores. Apollo Pharmacy, Wellness stores are already operating into that model.
 One of the profitable model could be to enter in partnerships with Hospitals, where Hospital could provide space for Pharmacy and Medlife
could manage Inventory staff etc. The profit could be shared between Hospital and Medlife.
Why: Medlife will not have to invest in space for Pharmacy and its inventory could be sold through these stores.

Tie up with Health Insurance companies

 They could potentially enter into tie ups with Health Insurance service providers; where customers could get additional discounts if they have
Health Insurance from a particular policy and bought through Medlife app.
Why: After Medicine, Diagnostic tests, Doctor consultancy- Health Insurance seems next step for further expanding ecosystem.

Corporate Health Solutions

 Medlife can provide Health management solution to corporates – Annual Health packages, Doctor consultancy to employees. Similar to a
Corporate Health Insurance policy , Medlife can enroll employees for a Annual policy/ subscription model.

Doctor to Doctor consultancy

 As number of enrolled Doctors increase with Medlife, it can create a platform for Peer to Peer consultancy. [ Example- Internal medicine
consulting with a specialty doctor. Why : Medlife has invested in AI - Medzlab and this can o also provide suggestions to Doctors.
Summary.

Summary
 Both PharmEasy and Medlife have very similar business models.
 Both Companies started with only Pharmacy model and now expanding to Doctor consultation, Diagnostics.
 Medlife currently has wider product portfolio and Value added services compared to PharmEasy but most of its new
offerings are in very early stage.

 PharmEasy has good financial backing and can be expected to grow existing business line to more cities and venture into
new businesses.
 One of the common threat to both business is companies like Amazon, Big Basket ,Swiggy already having logistics
infrastructure for delivering pharmacy products.
• References and Assumptions
Some of the sources used

https://m.dailyhunt.in/news/nepal/english/entrackr+english-epaper-
entrackr/1mg+loses+out+to+pharmeasy+in+volume+of+transactions+kalagato-newsid-141501950

https://retail.economictimes.indiatimes.com/news/health-and-beauty/pharmacy/online-pharma-market-to-touch-2-7-bn-by-2023-
report/69556951

https://www.televisory.com/blogs/-/blogs/boom-in-the-online-pharmacy-market-in-india-and-the-challenges-ahead

https://pharmeasy.in/

https://entrackr.com/2019/10/1mg-loses-out-to-pharmeasy-in-volume-of-transactions-kalagato/

https://yourstory.com/2020/01/e-pharmacy-startup-medlife-financials

https://yourstory.com/2019/04/online-healthcare-platform-medlife-funding-interview?utm_pageloadtype=scroll

https://www.livemint.com/companies/start-ups/pharmeasy-in-early-funding-talks-with-softbank-at-double-its-valuation-1553466705009.html

https://www.medlife.com/
Assumptions

Data for Financials derived

- Previous years by Interpolation and Future years by extrapolation assuming available data as reference.