We will be the largest e-Diagnostic player by March 2019: Prashant Singh, MedLife
Singh, Founder & Director, MedLife spoke about recent acquisition of MedLabs and how they will consolidate diagnostic business by integrating its technology platform & logistics strengths
Published - 07-February-2019
The pharmaceuticals market in India is the third largest in terms of volume, and 13th position in terms of value it holds. According to a report by Frost & Sullivan, the e-Pharmacy market in India is estimated to be about $512 million (INR 3,500 crores, approximately) in 2018 and is estimated to grow at a CAGR of 63 per cent to reach $3,657 million (INR 25,000 crores, approximately) by 2022.
Established in 2014, MedLife International is one of the leading e-Pharmacy companies in India and according to Frost and Sullivan report they own 30 per cent of the e-Pharma market share in the country. The company was in the news recently with their acquisition of MedLabz, a Mumbai based digital health care platform. They have also announced its first state of the art Central Laboratory in Bengaluru. Last year, Medlife has acquired Eclinic 24/7, a consumer healthcare start-up for an undisclosed amount. MedLife which is currently clocking an annualised revenue run rate of Rs 100 crore per month is expected to double it to Rs 200 crore by March 2019 and touch Rs 500 crore by March 2020.
In a quick conversation with exchange4media, Prashant Singh, Founder and Director, MedLife spoke about the acquisition, the technologies and strategies used by MedLife.
Speaking on their recent acquisition of MedLabs Prashant Singh said, “The lab vertical is an important vertical for MedLife and as a contributor, today it contributes 7-8 per cent of the total Gross Merchandise Volume (GMV) with plans to increase it to 20 per cent over the next 2 years. To be able to get such growth it’s important to have a robust tech product and the right team. In Medlabz we saw both of this hence thought it would be a great synergetic fit. With this acquisition we will consolidate our diagnostic business by integrating its technology platform and logistics strengths of both the companies.”
He continued, “We are also establishing first state of the art Central Laboratory in Bengaluru. The Central Lab is spread over 5,000 sq ft and is a fully automated path lab. The combined investments are part of MedLife’s plans of offering an enhanced healthcare experience in diagnostics for Indian customers.”
Speaking on the technologies used by MedLife, Singh said, “We are looking to adopt Artificial Intelligence (AI), machine learning and Big Data in multiple use cases including digitisation of patient records, e-Consultation enhancement, inventory demand prediction, customer experience customisation and many other frontend and backend features”.
“We are currently the largest e-Pharmacy in India with a 30 per cent market share. By March 2019, we will also become the largest e-Diagnostic player and by 2021 become the largest pharmacy and diagnostic player among both offline and online players. Our strategy is mainly to drive efficiency in our sourcing and operations, and pass on the extra value this created to our customers. Also, since we eliminate middle men involvement, customers are able to further save on their healthcare expenses,” said Singh about the business and marketing strategies used by MedLife.
Speaking on the Omni-channels presence in the retail industry Singh said, “Omni-channel presence is the future of retail industry. The Indian consumer especially those above the age of 45 and who are the primary TG for us like to know and see the company around them before they can form a trust in their mind. Also, sometimes the need is to get a medicine or product in 10 minutes and in such cases a pure online play cannot help. Furthermore, since we want to provide hyperlocal delivery services clubbed with the complete healthcare suite of pharmacy, pathology, day care services and family doctor consultations, having an Omni channel presence will help us leverage costs across both the counter sales and online sales.”
Talking about the expansion plans and key focus areas for 2019 Singh said, “We would be expanding our pharmacy reach to 30 cities from the present 21, hence covering all states.”
“We will be opening 10 labs and 25 collection centres across all T1 and major T2 cities. We will be adding 200-250 offline pharmacy stores too through the acquisition model. Other than this we plan to scale up our in-clinic product from 3000 doctors to 50,000 doctors this year,” concluded Singh.