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May 7, 20203 min read

Ratan Tata buys 50% stake in Mumbai teenager's pharmacy chain


Generic Aadhar, a start-up by Arjun Deshpande, follows a unique pharmacy-aggregator business model - it sources generic drugs directly from manufacturers and sells to pharmacies, eliminating 16-20 per cent wholesaler margin.




KEY HIGHLIGHTS

  • Arjun Deshpande, 18, started the business two years ago with funding from his parents

  • Ratan Tata has made the undisclosed investment at a personal level

  • 30 retailers from Mumbai, Pune, Bangalore and Odisha are part of Generic Aadhar chain

  • Deshpande plans to roll out 1,000 pharmacies in a year and expand to Gujarat, Andhra Pradesh, Tamil Nadu and Delhi


Tata Group patriarch Ratan Tata has picked up 50 per cent stake in 'Generic Aadhar', a unique pharmacy retail chain promoted by 18-year old Arjun Deshpande from Mumbai. Unlike other online pharmacies, Generic Aadhar sells medicines at much cheaper rates than the market price.


Deshpande confirmed the development but refused to disclose the amount of the deal. He said the business tycoon had keenly listened to his proposal 3-4 months ago. Tata was interested to partner and mentor him in running the business. "Sir Ratan Tata has invested in Generic Aadhar two days ago for 50 per cent stake and a formal announcement will be made soon," he told Business Today.


Sources said Ratan Tata had made the investment at a personal level and it was not linked to the Tata Group. Ratan Tata has invested in many startups in the past, including Ola, Paytm, Snapdeal, CureFit, Urban Ladder, Lenskart, and Lybrate.


Deshpande started Generic Aadhar two years ago. It now boasts Rs 6 crore annual revenue. The startup follows a unique pharmacy-aggregator business model. It sources generic drugs directly from manufacturers and sells to retail pharmacies, eliminating 16-20 per cent wholesaler margin.




Ratan Tata picks up 50% stake in Mumbai teen’s pharmacy retail chain


Ratan Tata has picked up the stake in ‘Generic Aadhar’, a unique medicine aggregator is promoted by 18-year-old Mumbai teenager Arjun Deshpande. The startup is known to sell medicines at much cheaper rates than the market price.


Tata Group Chairman Emeritus Ratan Tata. (Photo: PTI)


Industrialist and Tata Group Chairman Emeritus Ratan Tata has bought 50 per cent stake in a unique pharmacy chain promoted by a Mumbai teen.


Tata has picked up the stake in ‘Generic Aadhar’, which is promoted by 18-year-old Arjun Deshpande, reported Business Today.


Generic Aadhar is known to sell medicines at much cheaper rates than the market price. While Deshpande confirmed the deal, he denied disclosing the amount involved in the deal.

Deshpande added that Tata had earlier heard the proposal three to four months ago and agreed to invest and mentor him in running the business.


"Sir Ratan Tata has invested in Generic Aadhar two days ago for 50 per cent stake and a formal announcement will be made soon," he told the publication.


Sources who spoke to BT said Ratan Tata had made the investment at a “personal level” and that it has no links with the Tata Group.


It is worth mentioning that Tata has been known for investing in many startups in the past including Ola, Paytm, Snapdeal, CureFit, Lenskart, Urban Ladder and more.


Despande has started Generic Aadhar almost two years ago and the company now has an annual turnover of approximately Rs 6 crore. All credit goes to its unique business model.


The startup follows a unique pharmacy-aggregator business model and sources generic drugs directly from manufacturers, following which it is sold to retail pharmacies. This results in elimination of 16-20 per cent wholesaler margin.


It may be noted that 30 retails from Mumbai, Pune, Bangalore and Odisha are part of the Generic Aadhar chain and follow the same profit-sharing model.














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