In the rapidly evolving healthcare landscape of India, the affordability of quality medicines remains a pressing concern. With many patients unaware of the benefits of generic alternatives, organisations like Zeno Health are stepping up to bridge this gap by offering high-quality medicines at affordable prices. By raising awareness and expanding access, Zeno Health aims to transform the healthcare sector.
In an exclusive conversation with BW Healthcare, Siddharth Gadia, Co-Founder and CEO of Zeno Health, shared insights into the company's journey, its growth plans, and the challenges it continues to face. Here are the excerpts from the conversation:
Give us a brief about Zeno Health’s inception
Zeno Health was founded in 2017 by IIT alumni Siddharth Gadia and Girish Agarwal. Initially, they were developing software solutions for the pharmaceutical industry, where they discovered that generic medicines in India were often sold under branded names, leading to consumers paying unnecessarily high prices. This revelation highlighted a broader issue of lack of awareness in the healthcare sector.
This realisation sparked the inception of Zeno Health with a mission to "Democratize Healthcare in India" and to "Create Healthier and Happier Lives." Our first step in this mission is to educate consumers about the nature of the medicines they consume and to provide them with
high-quality generic alternatives at the most affordable prices.
Zeno Health was earlier known as Generico. What was the reason behind the change in the name?
We started as Generico but rebranded to Zeno Health to reflect our broader vision of affordable healthcare beyond just medicines. The name 'Zeno' is inspired by the word 'Zen,' symbolizing a state of being healthier and happier. Zeno Health embodies this vision by offering a holistic approach to healthcare, aiming to create a better world for everyone.
What are the issues that you are currently addressing in the market? Can you share details of some of your unique products/services?
India is predominantly a generic medicine market by law, yet major pharmaceutical companies exploit consumers' lack of awareness and minimal government healthcare expenditure by branding generics and monopolising the market. At Zeno Health, we are transforming how India consumes medicine by providing consumers with access to the highest quality generics. We achieve this by cutting out intermediaries, sourcing directly from manufacturers, and offering these medicines at the most affordable prices. This approach not only benefits consumers but also sustains a profitable business model, making Zeno Health the most affordable medicine provider nationwide while maintaining healthy margins.
Can you share details regarding your recent fundraising round? What is the total amount of funds you have raised so far?
We recently secured USD 25 million in funding, which will significantly support our expansion and operational efforts.
You recently acquired Kolkata-based startup Tablt Pharmacy. What was the purpose behind the acquisition and how will you be utilising Tablt’s strength for your growth?
Our mission to democratise healthcare includes impacting one crore lives monthly and helping them save 50 per cent on healthcare costs.To achieve this, we need to expand into deeper regions of India, often referred to as 'real Bharat.' Acquiring Tablt Pharmacy is a strategic move towards this goal. It enables us to venture into social commerce, providing us with a cost-efficient, asset-light distribution model to reach non-metro areas. We are starting with West Bengal and plan to extend our reach to other parts of the country, focusing on Tier 3 to Tier 6 regions, to make affordable healthcare accessible to all.
Can you share a brief about your expansion plans in West Bengal? Are you also planning to expand in other cities?
In West Bengal, our goal this year is to deepen our presence across all regions, from Tier 2 to Tier 6 areas, by partnering with local community members. Our aim is to reach every single pincode in the state by the end of the year. This comprehensive coverage will ensure that residents in even the most remote areas have access to affordable healthcare. Beyond West Bengal, we plan to extend our reach to other cities and states, continuing our mission to democratise healthcare across India.
What are some of the challenges/hurdles you have faced in the past? What are your current hurdles and how do you plan to overcome them?
One of our most significant challenges has been increasing awareness about generic medicines among the Indian population. Many consumers are unaware of the availability and efficacy of generics, leading to unnecessary expenses on branded medicines. To address this, we are actively engaging with doctors, local societies, communities, and through our marketing efforts to educate people about the benefits of generics. This multi-faceted approach is crucial to breaking down misconceptions and fostering greater acceptance of generics.
What are your expansion plans for the next 3 years? (Team, infrastructure, store expansion, number of customers to be served, etc.)
Over the next three years, we plan to establish nearly 500 Zeno Health stores in three major metropolitan areas, aiming to serve around one million consumers monthly.
Additionally, we will expand our social commerce presence, particularly in Eastern India, targeting 3 to 4 states. This initiative is expected to reach approximately 500,000 consumers. Our expansion strategy includes growing our team, enhancing our infrastructure, and increasing our store network to better serve our expanding customer base.
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