Biddano (Round Closed)
B2B pharma and medicine delivery company
Official Website
Reports and Documents
₹ 12Cr.
Quantum
Equity
Mode
₹ 102951.30
Share Price
₹ 262Cr.
Valuation (pre-money)
About the Opportunity
Business Model
- Managed Marketplace: Biddano operates as a managed marketplace for Indian pharmacies.
- Pharmacy Procurement: Pharmacies can efficiently procure medicines, achieving better pricing and margins compared to traditional pharmaceutical distributors. Biddano platform aids pharmacies in product discovery, accessing schemes, tracking product availability, and identifying trending products in their local areas.
- Demand Generation: Biddano generates sales demand through its unique mobile app. Pharmacies place orders throughout the day and benefit from special pricing during peak-hour flash sales. Demand information is owned by Biddano.
- Supply Management: Biddano employs a unique hybrid sourcing model. Products are sourced in real-time from stockists after pharmacies place orders. Fast-moving, high-margin products are maintained in Biddano inventory, procured in bulk from India’s top stockists every ten days. This hybrid model ensures a 100% fill rate while enhancing gross margins. The tech platform improves overall supply chain efficiency.
- Tech Platforms: All platforms are fully integrated, automating the entire order life cycle, including a Pharmacy App, Stockist App, Admin Platform, ERP/WMS (Warehouse Management System), Picker/Packer App, Rider App and Finance/Management Dashboards.
Founders
- Talha Shaikh (Business, Operations, Fundraising): Qualifications: B-Tech graduate from SIT Pune.
- Professional Experience: Worked with MNCs like Cognizant on JP Morgan fintech projects.
- Industry Background: Pharma background with a family business in hospitals and diagnostic centres.
- Domain Expertise: Over 7 years of deep domain experience.
- Murali Ramanath (Tech, Product, Strategy, Fundraising): Qualifications: M.S. in Computer Science from Pace University, US.
- Executive Programs: The Wharton, IIMB.
- Professional Experience: Previous roles as MD at financial institutions including
- Citi Bank, RBS, and Standard Chartered. Established captive businesses at a global level.
- Experience: Over 20 years of experience in technology, leadership, business management, and strategy.
Revenue Model
- Trade Margins (Live): Biddano currently earns trade margins on every pharmacy order placed through the Biddano app. The cost-plus model provides gross margins of 10.64% on every order.
- Trade Promotion (Q1FY25): Biddano plans to launch this revenue stream for new-age D2C brands and existing pharma companies. This feature enables brands to market their products to pharmacies on the Biddano app.
- Product Launch (Q4FY24): Biddano will onboard brands to launch new products through its phygital infrastructure.
- Firm Incentive (Q2FY25): Biddano aims to move up in the value chain and onboard brands directly. Upon hitting specific revenue milestones, brands usually offer incentives to channel partners.
- Private Label (Q4FY25): Biddano plans to launch its private label brand by understanding product consumption patterns through the data analytics platform to improve gross margins.
- Channel Partnerships (Q1FY25): Biddano is in discussions with companies providing relevant healthcare services to consumers. Pharmacy is a potential channel for many companies for product/service distribution. Biddano will integrate with such companies, providing access to Biddano-powered pharmacies and working on a commission model.
Traction & Market Opportunity
- Revenue Breakdown: Revenue from 2016 to 2019: INR 25Lakhs.
- Revenue from 2019 to 2023: INR 20Cr.
- Geographic Expansion: Biddano aims to expand to the top 52 cities in India over the next 36 months.
- Addressable Market: We are focusing on capturing 10% of the wallet share of active pharmacies and targeting 66% of the pharmacy population located in Metro and Tier 1 cities.
Current Round Details
- Round Type: Equity.
- Quantum: INR 12Cr.
- Valuation: INR 262Cr (pre-money).
- Share Price: INR 102951.30.
- Commitments: INR 6.5Cr (including investments from existing and new investors).
- Gap: INR 5.5Cr.
- Closure Timelines: Two months (culminating by December 2023).
- Utilization of Funds: Business Expansion – 50%, Tech Scaleup– 30%, Team Building – 20%.