Truemeds Attracts Peak XV in $64M Series C to Scale Affordable Healthcare Model
Telemedicine and online pharmacy platform Truemeds have added a further $20 million (about Rs 174.33 crore) to its current Series C funding round, with the new injection coming from Peak XV Partners—previously Sequoia Capital India and Southeast Asia. Peak XV’s investment is its first in Truemeds and reflects robust investor interest in the startup’s novel model of making healthcare more affordable. The new investment follows the $44 million raised by Truemeds in March this year, led by Accel and supported by existing investors such as Lightrock, Info Edge Ventures, and Athera Venture Partners. With this extension, the total Series C round now stands at $64 million, pushing Truemeds’ post-money valuation to approximately $410 million (Rs 3,487 crore), a 22% increase from its previous valuation in the C1 tranche, according to startup intelligence platform Entrackr.
As per regulatory filings accessed through the Registrar of Companies (RoC), the Truemeds board approved the allotment of 19,737 Series C2 compulsory convertible preference shares (CCPS) at an issue price of Rs 88,331 per share to raise the latest capital from Peak XV. The firm will utilize the funds to grow operations, invest in technology infrastructure, deepen its penetration into Tier II and Tier III cities, and enhance supply chain capabilities. The funding will also drive customer acquisition and enable new growth opportunities, pursuant to Truemeds’ vision for making healthcare affordable and accessible for millions of Indians.
Truemeds was established in 2019 by Akshat Nayyar and Kunal Wani and has made a name for itself in the emerging Indian digital health market by providing customers affordable substitute brands of prescription medicines over branded medicines. The platform uses a proprietary engine to identify substitute brands that are just as effective but at lower prices. Customers can upload their prescriptions, and Truemeds pairs them with certified substitutes from verified manufacturers. By aligning itself with licensed pharmacies, the firm guarantees safe and timely delivery of medicine at reduced prices—frequently as much as 80% cheaper than top-selling brands. The model particularly resonates in India, where affordability is a key hindrance to ongoing access to health care, especially for chronic diseases.
The funding round also reconstituted the company’s cap table. After the C2 allotment, Peak XV owns a 5% stake in Truemeds. WestBridge Capital is the firm’s biggest institutional investor, while Info Edge Ventures holds a 21.87% stake. Founders Akshat Nayyar and Kunal Wani hold 21.3% together, symbolizing their ongoing interest and operational presence in the business. Other major investors like Lightrock and Athera Venture Partners remain supportive as Truemeds looks to achieve sustainable growth.
Financially, Truemeds has registered healthy performance in FY24. The company doubled its revenue at Rs 315 crore, an increase from Rs 157 crore in FY23. Most importantly, it also succeeded in bringing down losses by 9%, with net losses standing at Rs 61 crore in FY24. These numbers indicate improved operational efficiency, enhanced customer retention, and increasing repeat users. The shrinking losses also mark the company moving closer to profitability, an important gauge in the capital-intensive healthcare sector.
Truemeds competes in a competitive market with established players such as PharmEasy and Tata 1mg. PharmEasy recorded revenue of Rs 5,664 crore during FY24, while Tata 1mg reported Rs 1,964 crore. Nonetheless, Truemeds has differentiated itself by having a tighter focus on lower-cost generic options and prescription-driven medicine supply, as compared to more extensive diagnostics and healthcare solutions provided by its competition. With this laser-like concentration, Truemeds is able to operate leaner and attract price-sensitive customer bases, particularly in underserved geographies.
According to a RedSeer report, India’s e-pharmacy market is expceted to exceed $10 billion by 2026, and Truemeds has laid the groundwork to respond to a greater level digitization of the health care space. The product also fits into several government-sponsored initiatives (e.g., Ayushman Bharat Digital Mission) that are focused on building a more integrated and inclusive health ecosystem, including digital health records, and affordable teleconsultations. Truemeds’ future growth strategy is likely going to be based on AI driven prescription analysis, optimizing logistics, and targeting local market expansion during the next few quarters.
The arrival of Peak XV Partners brings not only capital weight but also strategic acumen to Truemeds’ path. With a reputation for growing change-making startups in Asia, Peak XV’s participation will probably enhance Truemeds’ governance, facilitate fundraising from top-tier VCs, and provide new avenues of global partnerships. As the Indian healthcare space continues to grow, Truemeds emerges as patient-oriented, value-driven, and data-enabled platform that seeks to address one of India’s most intractable issues: access to cost-effective drugs. With its recent funding injection and strong growth curve, the company seems well on its way to scaling profitably and making a long-term difference in the Indian healthcare ecosystem.
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