Truemeds Disrupts Indian Pharma Market with Affordable Generics

Truemeds, a startup focused on generics distribution and telemedicine, is making significant strides in the Indian pharmaceutical market. By eliminating traditional marketing costs and leveraging a direct-to-consumer model, Truemeds offers affordable medications while maintaining a healthy margin. The company keeps margins between 50-60% before discounts and 20-30% after, enabling it to provide low-cost alternatives to expensive branded drugs.

India, with its $66.66 billion pharmaceutical industry, faces a pressing challenge in healthcare accessibility. The government’s monthly consumption expenditure survey indicates that average medical expenses push households to spend INR 135 in rural areas and INR 250 in urban settings. Despite being the largest supplier of generic medicines globally, accounting for 20% of the supply, many Indians struggle with high healthcare costs.

The founders, Akshat Nayyar and Dr. Kunal Wani, both former employees of Abbott, recognized a significant gap in the market. They observed that while the Medical Council of India (MCI) mandated doctors to prescribe drugs by their generic names, the market remained heavily skewed towards branded medications. This paradox prompted them to launch Truemeds in March 2019 to help patients access quality generic alternatives.

The startup initially functioned as a listing service, enabling patients to compare medications. However, as consumer interest grew, Truemeds evolved into a delivery platform that links affordability with accessibility. The company has successfully raised over $100 million, including an $85 million funding round led by Accel and Peak XV Partners.

Nayyar emphasizes that Truemeds is not simply about providing the cheapest options but rather delivering value for money while ensuring quality. The startup aims to address the fragmented generic market in India, where the dominance of branded drugs prevails. Currently, branded medicines account for approximately 88% of the pharmaceutical market, despite the availability of low-cost alternatives.

In a typical supply chain, branded drug companies retain a margin of 60-70%, primarily due to expenses related to advertising and medical representatives. In contrast, Truemeds eliminates these costs, allowing for a more favorable financial structure that benefits both the company and its customers. This innovative approach has helped the startup achieve a revenue of INR 510 crore in fiscal year 2025, reflecting a 57% year-on-year increase.

To further broaden its product offerings, Truemeds has started diversifying into vitamins, oral care products, and other essentials typically found in pharmacies. Nayyar notes, “Truemeds is not just a fulfillment partner, but also a demand generator and educator.” The challenge, however, lies in customer education and acquisition. Unlike traditional pharmacies that rely on prescriptions, Truemeds must persuade consumers to switch from branded drugs to generic substitutes.

The startup plans to launch diagnostic services in the near future, addressing the growing need for blood tests among chronic patients. By collaborating with laboratories in Tier II and Tier III towns, Truemeds aims to expand its reach and enhance service offerings.

While competitors like Tata 1mg and Apollo explore rapid delivery options, Truemeds prioritizes sustainable pricing models. Nayyar asserts that the company will continue offering one-day delivery for medications, maintaining a balance between fulfillment costs and customer savings.

With chronic diseases on the rise globally, accounting for 73% of all deaths, Truemeds’ mission to improve access to affordable healthcare is increasingly relevant. As it continues to grow, the startup faces the challenge of building trust in generics among Indian consumers, where branded medicines still dominate the market.

The journey of Truemeds showcases a promising shift towards greater accessibility in India’s healthcare landscape, as it seeks to empower patients through affordable, high-quality generic medications.