Will close $150-mn funding in 3-5 months: Medlife CEO Ananth Narayanan

Online health and pharmacy firm MedLife has brought onboard ANANTH NARAYANAN, former chief executive officer (CEO) of Myntra-Jabong, as co-founder and CEO. In an interview with Yuvraj Malik, Narayanan shares the reasons why he took up this role at MedLife and his immediate tasks that include plans for a $150-million fundraise. Edited excerpts:

After consulting and e-commerce, what brings you to e-pharmacy?

We look at it as e-health, of which e-pharmacy is only a part. MedLife has pharmacy, plus diagnostics and consultation. Overall, health care is a $100-billion market, with just less than 2 per cent (happening) online. This is a space where very little technology-based disruption happening. So I felt there is scope to build an interesting business with (co-founder) Prashant Singh and leveraging his experience in this space. In an addition to CEO, I am also putting money into the company.

How did this materialise?

After Myntra, I took six months of break. I was exploring various spaces that can go through technology disruption, including sectors such as agriculture, health and banking. Prashant met me through a common acquaintance two-and-a-half months ago and the discussion continued to evolve. 

Why did you pick MedLife and this opportunity?

MedLife has seen 100 per cent year-on-year growth. It has built very unique assets that are not there with other players. One is it has 6 per cent private label (business). The second one is its own lab network, one national lab, and four regional labs, which allow the company higher NPS (net promoter score). So, almost 80 per cent of diagnostics business we do by ourselves. Thirdly, through the Myra acquisition, we have the ability to do express and next-day delivery. As market leaders, we (MedLife) can really help the industry scale through technology. And that is my excitement to join. 

A CEO’s role also involves attracting investors and MedLife is said to be in the process of tapping its first external investment. Can you throw some more lights on this?

I hope my joining helps but it is not instrumental to the fundraise, because it (MedLife) is a fundamentally strong business. In the last few weeks, we met a lot of investors. We have lot of excitement from investors — strategic and financial — for a number for reasons. MedLife is the market leader where founders have invested a lot of money, and with my joining, somebody with experience in scaling, it has become an exciting combination. 

What is the progress on fundraise?

We will close the round in the next 3-5 months. We are targeting a $150-million raise.

What is the near-term vision for MedLife?

The focus areas are simple. We will continue to focus on growth trajectory, on all three lines of business (e-pharmacy, diagnostics, and e-consultation), and maintain 100 per cent year-on-year growth. 

We will continue to improve unit economics while we continue to grow. Thirdly, we will continue to scale the team, especially around products and technology.  The fourth priority is closing the funding round over the next 3-5 months.