Pharmacies stand as pivotal care hubs in India: MedPay

At a time when entrepreneurs are unleashing innovation across the digital health value chain, India’s retail pharmacy market, valued at 30 billion dollars, is yet to unlock the wide-ranging benefits of e-commerce adoption. Despite the surge in consumer demand since the Covid-19 pandemic, particularly among geriatric patients and those with chronic ailments, getting the local pharmacies online is not an easy task.

“Approximately 90% of India’s retail pharmacy outlets operate offline, belonging to the sector of unorganized retail pharmacy. These establishments lack digital integration with the healthcare system, creating hurdles for online visibility and e-commerce adoption,” says Ravi Chandra, Co-founder and CEO of MedPay, a leading health tech startup based in Bengaluru.

The unorganized nature of the space leads to numerous problems, such as frequent stockouts, selling of counterfeit and subpar medications, and limited access. However, by adopting digital solutions, retail pharmacies can be at the forefront of improving the quality, accessibility, and cost of healthcare for the average Indian consumer.

“Facilitating over five billion healthcare interactions annually, pharmacies stand as pivotal care hubs in India,” agrees Chandra. They play a major role in addressing chronic ailments, and making healthcare accessible to underserved regions. “In the aftermath of the pandemic, standalone pharmacies are increasingly expressing a willingness to join digital platforms that offer them a virtual storefront and establish connections with local customers,” he adds.

The digital presence of retail pharmacies facilitates convenient online exploration and ordering for nearby customers, ensuring prompt delivery from trusted medical stores. Given the expanding internet penetration across the country, it is a win-win for the pharmacies and the customers.

Positioned as India’s leading digital platform, MedPay connects pharmacies and consumers in the online space. Currently, over 40,000 pharmacy stores have enlisted with MedPay for digitization. “We collaborate closely with these pharmacies to enhance their digital infrastructure through our advanced technology,” informs Chandra, who is committed to creating a level playing field for all retail pharmacies and leveraging technology to generate value for consumers.

MedPay plays a crucial role in empowering local pharmacies by providing them with online discovery, ecommerce, and delivery capabilities. The digital pharmacy model helps enhance customer retention and foster sales growth, allowing customers to purchase medications online from the comfort of their homes in a timely and convenient manner.

Since its inception in April 2020, the Bengaluru-based startup has been building India’s largest Connected Care Network, connecting diverse healthcare players with online platforms and customers. In 2023, MedPay joined the Open Network for Digital Commerce (ONDC), becoming one of the earliest players to join the network. The startup has also collaborated with ICICI Lombard General Insurance in an industry-first initiative to provide outpatient department (OPD) solutions at pharmacies, clinics and diagnostic centres.

Although the e-pharmacy industry in India is still in its nascent stage, there is enormous potential to scale and flourish. With the right entrepreneurial spirit, government support, steady funding and technological backing, e-pharmacy can create new paradigms in the delivery of healthcare in the country.