New Delhi: eCommerce firm HealthKart is betting big on the multi-billion health and nutrition market in the country as an increasing number of people go online to buy products like health supplements and testing kits.
"Unlike other retailers, we are in a speacialised category of health and it is growing in India. The nutrition market alone is about $2 billion, growing at 22-25 per cent.
"Health and devices with products like glucose testing kits and blood pressure monitors, is a $3-5 billion market in India," HealthKart co-founder and Managing Director Prashant Tandon said on the sidelines of the Technopak Leadership Forum, E-tailing 2014.
The market is fragmented and offline retail alone cannot service the market and therefore, HealthKart sees a huge potential in the segment, he added. "Add to that the wellness market. People in the country today are more informed and concerned about what they consume. This alone is a $10-15 billion market," he said.
The company, which has about 350 employees, has so far raised about $22.5 billion in three rounds of funding. Its investors include Sequoia, Intel Capital, Kae Capital and Omidyar Network. Tandon declined to comment on revenue details.
Asked if the firm was looking at raising more funds, Tandon said HealthKart has been receiving interest but it is yet to finalise anything. "We would need funds in the next 6-12 months but we have not finalised any funding yet," he added.
The firm, which also operates a drug search app called HealthKart Plus, said over 30 per cent of its sales is coming from smaller towns. "A major problem that the small towns faced was the unavailability of health products and that of fakes. People don't mind fakes with apparel but will not take the risk with their health. We work directly with the brands and their authorised distributors to ensure that they get only genuine products," he said.
Through HealthKart Plus, the company offers information on prescribed medicines, substitutes, usage and also direct users to the nearest drug stores where it will be available. The app has already has 750,000 users.
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