Why we invested in Pharmint, a b2b pharma distribution disruptor

The cross border, b2b pharma distribution industry is fragmented, lacks transparency and is dominated by the top 10% of players.

1. In excess of 80% of b2b phama enquiries do not convert to sales because of issues such as payment risk
2. There are massive trust and transparency issues due to quality and delivery problems
3. Over 90% of the medicine market globally is with large number of fragmented and dispersed small non-branded players
4. Sub investment grade / non- existent credit rating?issues

Pharmint has solved for these problems by creating the world's largest b2b integrated pharmaceutical marketplace which has the following value propositions:

• Listings - suppliers list on the platform as a business
• Catalogue - catalogue creation and pricing etc..
• Vetting - Pharmint vets every supplier & documentation
• Discovery - supplier is live and and available for discovery
• Terms - buyers find suppliers, finalise terms. Chats/Zoom integrations to enable negotiation?
• Escrow - buyer transfers money to escrow. Seller ships?
• Payment - payment credited to supplier’s bank on buyer confirmation?

What makes Pharmint attractive is that it sources products from India and China which both have competitive advantage in terms of cost and quality. Since Pharma margins usually range from 500% to 2,000%, it gives Pharmint a lot of white space to play in. The key here is that 90% of the market comprises of small players who need enabling. This gives Pharmint a massive market to go after.

For such a young company Pharmint has already achieved tremendous milestones:

• 300,000+ products listed
• 127 sub product categories
• 19 super product categories
• 200+ international buyers
• 300+ Indian suppliers
• 100+ Chinese suppliers

Every other player in this space is solving a part of the problem and not building an end to end solution which makes Pharmint's product better as they are providing end to end solution.?

• Product fit: By virtue of Industry and problem (pharma + B2B) (counter party risk)?
• Market fit: They are enabling 90 % of buyers and suppliers who are smaller and in developing markets
• Technology Intervention: Current processes are manual, time-consuming. This platform enables B2B transactions with complete record keeping, automation and 24X7?
• Team Fit: Plenty of experience in Pharma (10 + years) and Finance (20+ years)?

Draper Startup House Ventures is very excited to invest in this disruptor. If you'd like to learn more about Pharmint please get in touch with them today.