PlatinumRx is betting on generic substitutes to cut India’s soaring medicine bills

For most Indians with diabetes or hypertension, the monthly medicine bill can rival a household’s rent. The drugs they take are technically generics, yet they are sold as “branded generics” at markups as high as six times the base cost, making medicines the country’s single largest out-of-pocket healthcare expense.

That gap is the bet for PlatinumRx, a Bengaluru-based online pharmacy that has raised $6 million in Series A financing led by Stellaris Venture Partners. The startup, founded just last year by Ashutosh Pandey and Piyush Kumar, claims to shave as much as 50–60% off patient bills by supplying vetted substitutes sourced directly from pharmaceutical companies.

Since its launch in 2024, PlatinumRx says it has delivered to more than 200,000 patients across 20,000 pincodes. Its proposition is simple but disruptive: cut through the maze of branded generics and offer one trusted alternative per salt, backed by a strict quality-check process. Orders arrive in a day in big cities and within five across the country.

The company plans to use the new capital to add fulfilment centers, strengthen its supply chain, and expand its product and tech teams. Over the next year, the company is looking to reach a million customers with the help of AI-driven personalisation and tighter sourcing efficiencies.

“India is the largest exporter of generics in the world, yet our own patients still overpay for off-patent drugs,” said Pandey in an interaction with YourStory. “Chronic patients often spend Rs 2,000–Rs 5,000 a month on medicines. For many households, that’s a financial burden, and some even skip treatment. Our vision is simple: help families access medicines at 50–60% lower cost while maintaining top-notch quality.”

Today, PlatinumRx operates two fulfilment centers—Bengaluru and Delhi—and has expanded from 5,000 to over 20,000 pincodes in under a year. Demand is concentrated in Uttar Pradesh, Maharashtra, Delhi, Karnataka, and West Bengal, which together account for 60% of its customer base. Around 60% of customers come from metros and tier-1 cities, the early adopters of generic substitutes.

For Stellaris, which manages more than $600 million across three funds and has backed consumer names such as Mamaearth and fintech firm Kiwi, PlatinumRx represents both a healthcare bet and a distribution play.

“The chronic disease burden in India is rising, and so is the cost of medication,” said Naman Lahoty, partner at Stellaris Venture Partners. “The generics segment is growing very fast. While the overall pharma market is expanding at around 8% annually, generics are growing at more than 15%. Even on a large base, that’s strong momentum in a very large market.

PlatinumRx has taken a very sharp positioning. It focuses exclusively on high-quality generic substitutes, unlike most players who sell all kinds of medicines. That counter-positioning gives them a distinct edge.

The biggest gap in generics today is trust.

Despite government efforts, penetration is still less than 15% of the pharma market. Patients don’t trust the quality of what’s available. PlatinumRx is addressing this by ensuring only credible, high-quality brands make it onto the platform. That additional trust is critical for building the category.”

The startup is entering a contested market where incumbents—from Apollo 24/7 to Tata 1mg—are battling for scale. But unlike rivals that sell across categories, PlatinumRx has narrowed its focus to chronic care patients. The company is wagering that trust, consistency, and savings—rather than discounts and broad catalogues—will be the differentiator.