Business Model of Pharmeasy ~ Business Plan, Revenue Model, SWOT Analysis


Pharmeasy, a Mumbai based digital health care delivery platform which allows the users to select the required drug, diagnostic test and health care product delivered the same at its doorstep in shortest time and with maximum discounts. The Business Model of Pharmeasy involves its business plan, Revenue model, its competitors, SWOT Analysis and many more.

PharmEasy - Healthcare App - Apps on Google Play

It is one of the largest e-commerce businesses in India today, and India’s No.1 healthcare aggregator. It goals to furnish shipping of drug treatments and different pharma equipment in countless cities all over India. API Holdings Private Limited is the parent company of PharmEasy.

Business Plan

To obtain the customer’s trust, the e-commerce platform continues to inform clients nicely and gives an obvious platform to them as a way of assurance. The platform operates in the following way to make certain that the drug treatments and tools supplied are of the suitable best quality and delivered in time.

With this customer-focused approach, they have written their success story properly and proceeded to climb the ladder upwards. But they have honestly confronted several challenges and limitations at some stage in the journey.

Revenue Model

When it comes to revenue, the important income source is advertising. PharmEasy features ads on its homepage or search for results from specific pharmaceutical companies. These ads can additionally be from distinctive sectors like E-wallets, Telecom companies, or diagnostic centers.

The first approach for revenue generation is “Sponsored Listings Model”, an easy way to earn revenue. The digital platform over which the online pharmacy model works showcase the list of sponsors from pharmaceutical sectors. It includes brand logos and product displays with various schemes and offers.

The second approach for revenue generation is “Advertisement Model” which add a big contribution in revenue generation. The advertisements covers ads from various stake holders such as – diagnostic centres, insurance companies, pharma companies, banks and health care related product base firms.

The third approach for revenue generation is “Commission Model“. On the sale of each type of drug or health care delivery product the online pharmacy companies earns commission. The percentage of commission is pre defined depending upon market scenario an demand & supply sentiments.

PharmEasy is reportedly trying for IPO by end of 2021 or early subsequent 12 months to increase INR 3,000 Cr to INR 3,700 Cr, at a valuation of INR 21,800 Cr ($3 Billion). This is virtually one of the most evolving startups amongst the lot.


The digital E-commerce industry is having its dream run. Here is the list of some of its competitors:

  • Ranger Health
  • Myra Medicines
  • Hello Heart
  • Brown Packet

SWOT Analysis


  • Increasing Internet Technology: With the expansion and increased usage of the internet by the people its become so convenient for many to purchase things online. Especially after the pandemic and many businesses having shifted online, it’s an advantage for businesses like PharmEasy which was being run online since the beginning.
  • Increase Use of Mobile Health Solution: With the introduction of mobile health operating systems and apps, information can now be shared with a move of the fingertips. As mobile health becomes more widespread, solutions are rapidly increasing.
  • Ease of Payment: Convenient and less time-consuming payment methods.
  • Less Costly: Physical store pharmacies have higher costs; because of many intermediaries being involved in the sale of pharmaceutical medicines. Online pharmacies will cater in bulk by selling online; thus reducing the cost of medicines.
  • Convenient and User-Friendly: PharmEasy allows the users to purchase the medicine just at the touch of the fingertip, the complete process is very convenient and user-friendly.


  • Non-Trained Pharmacist: With things turning online there are also other untrustworthy people starting up their businesses which makes people question the authenticity of authentic providers/users.
  • Unsafe Delivery of Medicines: It should be made sure that the ordered medicine or product is delivered in time following all the health and safety requirements.
  • The Belief of Fake & Low-Quality Medicines: Since the prices are made affordable for people, customers tend to think that discount means compromising quality.


  • Increase in Market Value: High rise in the pharmaceutical market from 20 billion dollars to $35 billion. One of the major reasons for this is the pandemic.
  • Medical Requirements at Single Platform: Consumers are examining online pharmacy as a single place accessing all their medical requirements from medicine purchases to lab tests and medical consulting.
  • Demand for Healthcare Services: Increase in lifestyle diseases like diabetes and cardiovascular disorders, especially among senior citizens. The expected increase in demand for healthcare services, particularly pharmaceuticals, is due to the growth within the senior population demographic.
  • Internet: The number of people who use the internet is growing all over the world. This means that PharmEasy has the opportunity to expand its online presence by interacting with its customers more through the internet.


  • Increasing Competition Between Online & Retail: The industry’s competition has increased, putting downward pressure on prices. If PharmEasy does not adjust to the price changes, it may lose market share.
  • Unstructured Grievance Handling System: Unpredictability of consumer purchasing behaviour.
  • Political Instability: Additional governmental regulations and tax policies. Political indecision in the country can be an obstacle to business, causing performance to suffer and additional costs to be incurred.


Online pharmacy contributes the country economic development with enhanced growth of pharmaceutical sector and also provide tangible benefits to the consumers. The unprecedented growth of online pharmacy is result of digital revolution.