Saveo bags $4M funding co-led by Matrix Partners India, RTP Global & participation from Incubate Fund

Saveo is currently serving 2000+ pharmacies across Bangalore and 3000+ pharmacies across Karnataka and looking to capture 1,00,000+ pharmacies across India in the next 18 months spread across 100+ cities in India

Bengaluru: Saveo Healthtech, a B2B e-commerce marketplace for pharmacies has secured a $4 million seed round co-led by Matrix Partners India and RTP Global, with participation from Incubate Fund and India Quotient.
Notable angel investors include Cred founder Kunal Shah, Bigbasket co-founders V.S. Sudhakar & Vipul, Blackbuck founder Rajesh Yabaji, Of Business co-founders Asish Mohapatra & Ruchi Kalra, Yulu co-founders Amit, Naveen & RK Misra, Mosaic Wellness co-founder Revant Bhate, Shopkirana co-founder Sumit Ghorawat, and Raoul Bajaj, CEO Trafigura India amongst others, pooled in too.
The company plans to utilize fresh funding to penetrate deeper into existing geographies, expand to new territories along with upscaling the full-stack tech platform.
Founded in August 2019 by experienced IIT Graduates Amit Kumar, Anurag Savarnya, Shivansh Shrivastava and Vivek Jaiswal, Saveo is a B2B managed marketplace for Indian pharmacies providing a single procurement point for all possible medicines (allopathy, generics, surgical, ayurvedic, OTC, Specialty), bringing uniformity in service & margin and digitizing them to run, learn and grow their business on the app.
The Indian pharmaceutical industry is highly fragmented with 8.5 lakh pharmacies in India and 70,000 distributors (as per KPMG report), unlike the US where there are just 5 major distributors covering 93% of the market share. 86% of medicines in this sector are dispensed through the traditional route with no accurate prescription validation mechanism which makes it the most opaque industry in our country in terms of trading, knowledge gap and awareness. Saveo aims to streamline this supply chain by building the most transparent ecosystem and educate & empower these 8.5lakh micro-entrepreneurs and distributors with technology and sustainability.
Speaking on the announcement, Vivek Jaiswal, Co-founder at Saveo commented, “Saveo focuses on providing discoverability & convenience to the pharmacies on fingertips, which were never there in this salesman-driven industry. With this round, we aim to go deeper into the Indian healthcare Industry, channelize our energy towards the key insights we have and spend more on technology for building the future of healthcare delivery.”
Rajat Agarwal, Managing Director, Matrix India, commented, “The $25 billion pharmacy supply chain in India is highly fragmented, has high margins and its constituents are quite amenable to adopting technology – which makes it ripe for disruption. We believe that Saveo’s value proposition of the widest possible catalogue, 95%+ fill rates, better pricing and transparency has enabled it to quickly gain momentum in the pharmacy market in and around Bangalore. We are excited about their scale up plans and are privileged to be on this journey with the Saveo team.”
Kirill Kozhevnikov, Partner of RTP Global, commented, “We invest in talented founders who are leveraging cutting-edge tech to solve big problems and Saveo is no exception. The founding team, all of whom are IIT graduates, have extensive entrepreneurial experience and have already effectively scaled to secure a strong position in their home market of Bangalore. We are backing the Saveo team and supporting them to build the largest Indian B2B pharmacy marketplace.”
Nao Murakami, Founder & General Partner of Incubate Fund India commented, “Based on our experience with a couple of supply chain related startups, we think a deep industry understanding and strong operation capability are two most important factors for the success of any startups revolutionizing B2B supply chains in India. Saveo team is the best in class for both of these two criteria so it was very quick for us to decide an investment. We strongly believe that Saveo will make a huge positive impact on the pharmaceutical industry in India.”
“India’s pharma supply chain is completely broken and inefficient. Nos. of SKUs at pharma store are 20x+ more than a Kirana store. Pharma distribution is a push driven business in our country ie incentives, feet on the ground for sales, credit, etc. Saveo brings a paradigm shift in this industry by becoming 100% tech-enabled and transparent pharma procurement platform for pharmacies. Due to this unique approach, they have created a strong brand in a very short span among Bangalore pharmacies with very limited capital.” said Gagan Goyal, General Partner at India Quotient.
Saveo had earlier raised INR 2 Cr (270k $) in March 2020 led by early-stage venture capital firm India Quotient and First Cheque with participation from Better Capital. Founders of Sharechat (Farid), OkCredit (Harsh & Gaurav), Generico (Siddharth & Girish), Giva (Ishendra) had also pooled in.