Pharmaceuticals Startup Pharmallama with Smart Pill Boxes and ₹2 crores for 5% Equity Shark Tank Deal!

Pharmallama is transforming the way medicines are stored in Indian homes with its innovative smart pill boxes. These boxes are designed to organize and simplify medication management by providing pre-sorted sets of pills based on a doctor’s prescription, along with an easy-to-use dispensing system. In addition to the smart pill box, Pharmallama has created an app that helps users monitor their medication schedules and connect with healthcare professionals. Since launching in April 2022, they have successfully helped over 5,000 families manage their health more effectively.

Click here to visit their official website: Pharmallama

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Pharmallama successfully raised ₹5 crore by partnering with ACG Pam Pac, one of the biggest packaging companies in the world. In this deal, they gave up 50.9% of their company, and ACG became a strategic investor. Both parties have agreed to share intellectual property through a joint Memorandum of Understanding (MOU). Each of Pharmallama’s machines is priced at ₹1.34 crore, while their packaging costs are competitive at around ₹20 per order. Currently, their pharmacy sells medications at the maximum retail price (MRP), but they plan to offer them at a lower price in the future. The customer acquisition cost stands at ₹900, and the average order value is ₹1,400. They also enjoy a strong customer retention rate of 91% over five months.

In terms of financial results, Pharmallama generated ₹17 lakh in revenue during the financial year 2021-2022 and achieved a remarkable ₹85 lakh in just the first five months of the 2022-2023 financial year. They are currently experiencing impressive month-on-month growth of 100%, recently reaching ₹24 lakh in sales last month. Furthermore, they have received a term sheet from one of India’s leading e-commerce players, believed to be Flipkart. Pharmallama is now working on raising a larger funding round, aiming for a minimum valuation of ₹45 crore through a convertible note.

After appearing on Shark Tank India, Anupam made an initial offer of ₹1 Crore in exchange for 2.22% ownership of the company. However, Peyush proposed that the investors work together, leading all the “sharks” to create a joint offer of ₹2 Crore for a 5% stake in the business. Pharmallama responded with a counteroffer of 5%, but the sharks turned it down. In the end, both sides agreed on a deal where Pharmallama would give up 5% equity for the investment of ₹2 Crore. Peyush later mentioned that Pharmallama was his top choice among all the pitches he had seen on Shark Tank India.

Their journey started off well when they successfully made a deal with investors, referred to as “the sharks.” By July 2023, they announced that they had sent out over 300,000 medicines, which indicated that their business was growing.

However, Pharmallama faced some serious problems. The Delhi Chemists Association, a group that represents local chemists (or pharmacy owners), argued that running an e-pharmacy like Pharmallama is against the law in India. They claimed there are no rules that allow Pharmallama to repackage and sell medicines online legally.

In response to this, the association sent a legal notice, which is like a formal warning, to the founders of Pharmallama and also to the Health Ministry, saying that Pharmallama’s activities should be stopped for the safety of the public.

After this legal issue arose, Pharmallama’s social media stopped being active, which made people think they were in trouble or dealing with legal problems. The situation worsened, and in December 2023, a news source called Medianama reported that Pharmallama had officially shut down their operations. So, while they started strong, legal challenges ultimately led to their closure.