Have you ever dreamed of partnering with a renowned healthcare platform? Do you own a medical store and not satisfied with its profit margins? Do you wish to boost up your sales and margins by partnering with one of India’s leading healthcare platform?
Undoubtedly, the medical industry has shown tremendous growth since last few years and it also benefitted its unitholder exceptionally. And it quite seems like this run gonna be a marathon. Then, why not starting your new venture by opting an established franchise house.
To solve it, you may consider associating with a popular and leading healthcare platform – PharmEasy. Is it new to you? No worries! you have got backing from us.
In this blog, we’ll be covering a comprehensive article on starting a PharmEasy Franchise in your city with its capital required, cost, profit, expansion strategies, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Brand: PharmEasy
- Founded: 2015
- Industry: Healthcare platform
- HQ: Mumbai
- Model: Franchise
- No. of outlets: Over 250
- Space required: Min. 120 sq feet
- Profit Margin: 15% – 20%
- ROI: 1-2 yrs
- Total Initial Investment: Rs. 3 lacs – 5lacs
Table of Contents
Overview of PharmEasy Franchise
PharmEasy is one of India’s leading and rapidly growing healthcare platforms, started by Dharmil Sheth and Dhaval Shah in 2014 with an initial funding offered by their parents. Later, the startup was merged with API Holdings, which is headquartered in Mumbai, Maharashtra. The chain claims to be India’s largest franchise network of pharmacies that offers Medicines, Lab Tests and Healthcare Products – all under one roof.
With an aim to transform pharmacy and healthcare center into transparent, reliable, and trusted platform, PharmEasy has grown into more than 250 plus stores across 30+ cities and counting.
The franchise offers over 1 lacs on-demand, home delivered access to a wide range of prescription, OTC pharmaceutical, and health products through its retail partners, and a normal consumers can place order through their platform with a guaranteed delivery to you in 24-48 hrs.
Having its wide product portfolio, it has gained immense popularity and has certainly emerged as India’s leading online pharmacies that operates with a mission to make healthcare accessible and affordable to everyone.
Please continue reading if you are passionate about Healthcare franchises & this little snippet about the PharmEasy chain excites you. I assure you that after reading this complete article you would be in a position to choose the BEST AVAILABLE PHARMA franchise and start your entrepreneurial journey with the PharmEasy.
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PharmEasy – The Journey
Actually, the entire journey for PharmEasy is quite interesting. From starting as a healthcare platform in Maharashtra by getting initial funding from their parents to building a more than ₹5700 Crores revenue-generating firm is quite inspirational for everyone.
Although the chain is making over 5000 crore in revenue, but is it really profitable business? We will learn more about it in upcoming sections.
Key facts about PharmEasy
|4||Founders Or Parent Company||Dharmil Sheth and Dhaval Shah|
|5||Corporate Headquarters||Maharashtra, India|
|6||Number of locations||Over 250|
|7||Area served||PAN India|
|9||Service offering||OTC pharmaceutical, and health products|
How much does a PharmEasy Franchise Cost?
The cost of starting a healthcare franchised outlet like PharmEasy will certainly depend in several factors, such as outlet’s geographical location, city, and available floor area. Nonetheless, To become a PharmEasy franchise partner, one would at least require an initial investment of ₹3 lakh rupees with expandable capital of ₹5 lakh, which may allow you to have proper stock inventory.
It is worth to mention that, the initial investment would go into expenses, such as Sign up fees, branding fees, and security deposit. It is also advised you to open these outlets at high street, city center, or near to any hospital or medical hub.
PharmEasy Franchise Fee
The franchise fee/security deposit fee for PharmEasy is ₹ 1 lacs. Furthermore, to qualify financially, franchise candidates and their partners/investors should be capable of investing at least ₹3 lacs.
The chain also charges signup fee of ₹ 1 lacs, and ₹1 lacs as branding fee.
|Type of Fee||Cost and Other Details|
|Interior decor + Furniture||₹ 1 lacs|
|Sign up Fee||₹ 1 lacs|
|Floor area||Min. 200 sq feet|
|Stock Inventory||Min. ₹ 2 lacs|
|Total Initial Investment||₹ 3 Lacs – ₹ 5 Lacs|
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How much is PharmEasy Franchise Profitable?
It could be certainly hard to comment on profitability of any franchise without knowing about outlet’s location, expenses, and franchise’s ability to run any business.
However, PharmEasy does offer necessary right to use their brand name, access to the company’s technology platform, and assistance with marketing & branding that may help new outlet holder to leverage brand value and build a ever-lasting impression with customers.
Moreover, the chain has been growing at rapid pace, and through its wide range of product portfolio, immense marketing support, affordable prices, omni channel model, extensive training support may help new PharmEasy franchise owner to earn a net profit margin of 15% to 25%. There are some medicines that may offer over 50% of margin.
Hence, PharmEasy chain can be a great opportunity for a franchise aspirant to join and gain a remarkable share in the pharmacy industry.
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Benefits of owning a PharmEasy Franchise
There could be several benefits of owning a pharmacy franchise. However, considering the number of OTC franchises available in the market make confuse you in deciding a better model. For your knowledge, there are franchises like TATA 1MG, NetMeds.com, Generic Aadhar, and Genericart that have been offering opportunity and have positioned themselves as a prominent player in it.
- Leverage brand value:
- As a franchise, you may be able to leverage PharmEasy’s established business model that may allow you to increase sales and revenue for your business.
- Higher profit margin:
- Undoubtedly, the demand for medicines going to be higher in near future and a chain like PharmEasy that comprises of OTC & Generic medicines may offer higher profit margins.
- Financial Benefits:
- PharmEasy also offer a credit benefits for its applicants with an Interest-free credit of up to Rs. 3 lakhs for up to 30 days.
- Range of services:
- The chain also provides a range of value-added services like Lab Tests, Insurance and cashback for additional earning.
- End-to-End support:
- There is always an advantage of operating under an established brand name, which can help them attract customers, and with their day-to-day support for managing its operations, inventory management, order processing, and extensive training support may help new franchisee.
- Tie-ups with leading brands:
- The chain boasts tie ups with leading FMCG and OTC brands that may allow new franchisee to earn an additional income.
What does it require to become a PharmEasy Franchisee?
The PharmEasy franchise Eligibility criteria and requirements are listed below;
- First and most important – One should have the required funding to own a PharmEasy medical outlet, that is one should be capable of investing at least Rs. 5 lacs.
- Interested prospects should have passion to work in the Pharma industry – and should possess the necessary leadership and financial skills with a few years of experience in this industry.
- Applicants should be capable of hiring 1 or 2 pharmacists & Minimum space of the outlet should be 150 sq feet ( Basement or semi-basement not allowed). The location must be in a commercial area and should be easily accessible to customers.
- Interested applicants are advised to dedicate themselves to the PharmEasy business and follow the company standards and maintain their legacy.
- Interested applicants must undergo and complete the necessary training program offered by the PharmEasy team.
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Financial Conditions of PharmEasy Franchise
While the chain may have been planning to bring its initial public offering (IPO) but its financial doesn’t look prominent to us. The franchise had also postponed its IPO plans citing market conditions.
As per the Fintrackr’s report, PharmEasy has haemorrhaged freely in FY22 as losses increased four times while revenues increased 2.5X. During the fiscal year ending in March 2022, it had an increase in operating revenue from Rs 2,335 crore to Rs 5,729 crore.
However, the majority of expenses(around 60%) is contributed by cost of procuring the stock in trade.
How to Get PharmEasy Franchise?
Becoming an approved PharmEasy outlet owner requires a low investment that offers an impressive gross profit margin. Additionally, the PharmEasy chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.
To become an approved PharmEasy partner, one can go ahead with the following steps;
- Visit its official website, and navigate to the Franchising section.
- Fill in the details like Name, Email Id, Phone Number, Pin code, and submit the form.
You may get a response with a week or so, and the team will guide you with further steps.
Final Takeaway – Summary
With growing demand in pharma sector may offer a huge opportunity for interested applicants to become a part of this industry, and one can indeed start their entrepreneurial journey with one of India’s renowned healthcare platform – PharmEasy.
The chain has robust presence of more than 250 outlets across 25+ cities in India and more outlets planned for future release may create tremendous opportunity for interested applicants.
With a minimum investment of ₹ 5 lacs and a little experience in pharmacy, one can take this franchise and leverage brand presence, extensive marketing support, and may earn a net profit margin of 15-20%.
The bottom line – Overall, the PharmEasy business model has proven to be a successful and if you really interested in Pharmacy Franchise, then you can start this model with a minimal investment. Indeed the online pharmacy is going to stay in India, and is expected to grow extensively in coming years.
So, what are you waiting for? Go and start your entrepreneurial journey with PharmEasy!!
Good Luck!! Happy Franchising!!
Want to explore more? Then check out below franchising opportunities.
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How much does it cost to Start a PharmEasy Outlet?
Ans: The total investment cost for PharmEasy may vary depending on the city, and outlet’s geographical locations. Usually, the total investment for PharmEasy medicine franchise cost may vary between Rs. 3 lacs to Rs. 5 lacs.
Is PharmEasy Franchise Profitable?
Ans: The chain does offer a hefty profit margin and with immense support program, a wide range of medicines and healthcare services, affordable prices, and countrywide presence may help new outlet owner to earn a profit margin of 15-20%.
How much does a PharmEasy Outlet owner make?
Ans: It depends on outlet’s geographical location, city, and average customer footfall. One may anticipate to earn around 15-25% of net profit margin. Interested prospect should at least do proper research for same.