Pharmallama is the 3rd company to get an all-shark deal in Shark Tank Season 2. Being able to tick all the boxes of the sharks is a challenging task. Not only did Pharmallama nail it, but Peyush Bansal too confessed, that according to him this was the best pitch by far in Shark tank India. Not in terms of money but from the perspective of vision and technology.
Pharmallama aims at replacing the chaotic medicine box that is a staple part of every Indian household with a smart pill box.
They provide an accessible and easy-to-use medicine system that makes it easy for you to manage your medicines and avoid missing any doses.
Let us check out how they manage to do this.
Pharmallama App
The entire journey is a 4 step process:
- Download their app and make your profile.
- Then you need to upload your doctor’s prescription.
Their registered pharmacist will check the authenticity of the prescription. (One advantage of ordering from Pharmallama is that you don’t have to pay for the entire packet, you just need to pay for the number of pills that have been prescribed to you)
- Their pharmacist will call you and confirm the prescription and confirms the price.
Once the order is confirmed, the medicines are then fed into their machines and the packets are made. On this packet, the name of the patient, dose, time, and amount are written.
Right now they are printing in the English language, but soon they are planning to print in all the local Indian languages.
- These medicines are then packed and delivered to your doorstep within 3 days.
Pharmallama
The machines that they are using were originally designed for hospitals, and their throughput was 20 to 25 minutes for one order.
Pharmallama has its own IOT (Internet Of Things) team, that has changed the hardware and software of these machines. Now they produce 25 orders in one hour.
They launched their products in April 2022 and within 6 months they have helped 5000+ families.
ACG Pampac machines which is the world’s second-largest manufacturer of films and foils for packaging are their strategic investor and have an equity of 50.9% in Pharmallama.
Pharmallama also is using ACG pampac’s machines for packaging their medicines on rent, because these machines are expensive. They cost around ₹1.34 crores.
Namita was curious why they have used the face of an animal named Lama on their packaging, the founders replied that no one smiles while opening their medicines so they thought of using this as their mascot.
This is What Got Them all 5 shark Deal?
They have worked on the hardware and software of the machines for their medicine packaging, it is difficult for any competitors to fight with them. Their competitors too will have to scrap the entire software and make a new one along with making changes in hardware. This gives them a competitive moat.
They give their medicines at MRP, which did not go down well with the judges because most of the online pharma companies give medicines at around a 15% discount. The founders assured them that the selling price can be brought down without hurting the profits much.
Their CCA (Cost of customer acquisition) is ₹900 and their average order value is ₹1,400. Their repeat customers are 91% and the lifetime value of one customer is around ₹42K. Their month-on-month growth is an impressive 100%.
This is undoubtedly IMPRESSIVE.
Pharmallama Founders
Arjun Raghunandan, Achintya Dayal, and Deepesh Rajpal are the founders of Pharmallama.
In 2019 Achintya Dayal’s mom was diagnosed with Kidney failure, the reason was that the overdose of medicines affected the kidney. So to overcome this problem they would staple her medicines on paper before leaving for work.
Then he realized that an automated version of that can be done. While talking with other people, they came to know that Alzheimer’s, cancer, and T.B. patients too face the same problem.
This gave them the idea to start this bussiness.
Pharmallama Shark Tank Deal
They had asked for ₹1 crore for 1.5% equity at ₹66.67 crore valuation.
They had already raised money at ₹45 crores Floor valuation (It sets the minimum possible valuation at which the convertible note derives its conversion price.
They had come to shark tank for D2C expertise and to learn marketing mechanisms from them.
Anupam Mittal offered ₹1 crore for 1.5% equity at ₹45 crore valuation.
Peyush convinced him to do an all-shark deal, to which he reluctantly agreed and the sharks gave the offer of ₹2 crores for 5% equity.
The founders gave the counteroffer of ₹200 crores for 4% equity, which the sharks did not accept.
The founders found it difficult to refuse this offer even though it was ₹5 crores less valuation than their previous investors and the deal was made at ₹200 crores for 5% equity.
Where Can You Find Them
Website | Instagram | Facebook | Twitter | LinkedIn
Concluding Remarks
A good product combined with amazing entrepreneurs, along with its capacity to solve a genuine problem is a dream business opportunity for any investor.
It’s good to see the sharks giving a combined offer amicably rather than fighting it out. Although the shark fight provides a dose of entertainment for the viewers, the sharks are also role models for the young entrepreneurs of the country.
Having conflicts while making a deal is unavoidable, but the answer to conflicts is not always a fight. Resolving the conflict with peace is always the best answer and sets a good example for the youth to imbibe.
the aim should be to solve these conflicts with peace, should be solved with peace. The answer to conflicts is not to fight. Resolving the conflict with peace is always the best answer and sets a good example for the youth to imbibe.
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