Pharmacy retailer Medlife to invest Rs 700 cr

Online pharmacy retailer Medlife is looking at investing over Rs 700 crore to drive growth and has set a target of Rs 3,000 crore revenue over the next couple of years, driven by diagnostics division and increased omnichannel presence, a top company official Wednesday.

The Bengaluru-based company expects to close this fiscal year with a revenue of Rs 830 crore. In FY17 its revenue stood at Rs 300 crore.

Medlife expects its e-pharmacy business, which currently contributes around 80 percent of revenue, to come down to 65-70 percent next fiscal year.

Its private labels include ayurvedic health supplements now but will expand into generic products, over-the-counter products, and sports supplements. Private label portfolio consists of around 20 products which will grow to 60-70 items by the end of this year and it will contribute 14 per cent revenue next five years from the present 5 per cent.

"We expect to do around Rs 3,000 crore of revenue next fiscal year. This growth would be from our lab business and the essential business (private labels)," Medlife chief

executive and director Tushar Kumar told PTI here.

Started in 2014, the company expects to be profitable by next fiscal year and has invested over Rs 300 crore so far and is planning to invest over Rs 700 crore over the next

couple of years to drive growth, Kumar said, adding the company is self-funded and has no plans to raise funds.

To boost revenue, Kumar said, the company is also scouting for inorganic growth opportunities in the smaller pharmacy retail chains in the metros.

Medlife has drawn up plans to have 150 stores next year, primarily in samll towns as people there prefer the brick and mortar stores over virtual stores.