How to Start a PharmEasy Franchise: 15-30% Profit Margin?

With the increasing demand for healthcare services and the convenience of ordering medicines online, start-ups such as PharmEasy have become a popular choice for many customers. If you are interested in starting a franchise with PharmEasy, this guide will provide you with all the essential information regarding the cost, fees, and profit margins.

Why Choose PharmEasy?

PharmEasy is one of the leading online pharmacies in India with over 50 lakhs customers. The platform offers a wide range of pharmaceutical products with a seamless ordering and delivery process, making it a popular choice for those seeking convenience and reliability. As a franchisee, you would be partnering with an established brand with a proven track record in delivering quality services to customers.

Requirements to Start a Franchise

The first step in starting a PharmEasy franchise is to meet the eligibility criteria. To be eligible, you must meet the following requirements:

  • Age: You must be at least 21 years of age.
  • Education: A minimum educational qualification of 10+2 is mandatory for all candidates.
  • Investment Capacity: The minimum investment required is INR 5 lakhs.

Cost and Fees

PharmEasy Franchise

The cost of starting a PharmEasy franchise varies depending on the city and location. However, the initial investment usually ranges between INR 5 lakhs to INR 10 lakhs. The investment covers the following expenses:

  • Franchise Fee – The franchise fee ranges between INR 80,000 to INR 1,00,000.
  • Setup Cost – The setup cost includes expenses related to infrastructure and equipment such as computer systems, internet connection, and furniture.
  • Marketing and Promotion – PharmEasy provides marketing and promotional materials to franchisees for building brand awareness in their respective areas.
  • Working Capital – You would require additional funds to manage daily operations such as salaries, rent, and inventory.

Here is an example of the total investment required for a PharmEasy franchise in a 200 square foot store:

Cost Amount
Franchise fee ₹1 lakh
Rent ₹10,000 per month
Inventory ₹1 – ₹2 lakh
Marketing ₹50,000 per year
Salaries ₹1,50,000 per year
Total ₹3 – ₹4 lakh

Profit Margins

The profit margin for a PharmEasy franchisee depends on various factors such as your location, sales volume, and marketing strategy. On average, the profit margin ranges between 15% to 30%. Additionally, the franchisee receives a commission on sales, which usually ranges between 5% to 20%.

How to Apply for a Franchise

PharmEasy Franchise

To apply for a PharmEasy franchise, you need to follow these steps:

  • Visit the PharmEasy website and fill in the franchise application form.
  • Once you submit the application form, a representative from the company will get in touch with you to discuss the further application process.
  • After the initial screening process, you will be required to attend an orientation session to understand the business model and the operational procedures.
  • Once the agreement is signed and the initial investment is made, you can start operating as a franchisee.

Please Also Read – How to Start an eKart Franchise: Investment, Fee, and Profit

Financial Status of PharmEasy

PharmEasy Franchise

In recent years, PharmEasy has been having trouble making money. The business has been losing money and adding to its debt. But the business is still growing quickly and has a strong brand name. It’s possible that things will get better for PharmEasy in the future.

Here is a table showing the financial status of PharmEasy:

Financial Metric Value
Revenue ₹5,729 crore (FY22)
Net loss ₹3,992 crore (FY22)
EBITDA (Loss) ₹2,589 crore (FY22)
Operating margin -43.9% (FY22)
Net margin -68.8% (FY22)
Debt $300 million (March 2023)
Market capitalization $1.4 billion (March 2023)

Here are some additional financial metrics for PharmEasy:

  • Gross margin: 56.1% (FY22)
  • Operating expenses: ₹3,178 cr. (FY22)
  • Net cash from operations: ₹167 cr. (FY22)
  • Free cash flow: ₹112 cr. (FY22)

Even though PharmEasy is losing money, these measures show that it is still making money. This is a good sign because it means the company has enough money to keep running and grow.

Overall, PharmEasy’s finances are not in the best shape. But the business is still growing quickly and has a strong brand name. It’s possible that things will get better for PharmEasy in the future.

Pros and cons of PharmEasy Franchise

PharmEasy Franchise


  • Strong brand name and reputation: In the Indian health care business, PharmEasy is a well-known and trusted brand. This means that partners are part of a well-known company with a good track record.
  • Online and offline presence: PharmEasy has a strong online presence with a website and a mobile app that millions of people use. The company also has a network of brick-and-mortar shops all over India. This lets franchisees reach a bigger range of people.
  • Support and training program: PharmEasy has a full support and training program for partners. This includes teaching on how to run a successful drugstore business and how to use the company’s goods and services.
  • Potential for high profits: India’s health care business is growing quickly, and the demand for pharmaceutical goods and services is likely to keep going up in the years to come. This means that franchisees could make a lot of money from their businesses.
  • Flexibility: Franchisees can run their businesses in a way that fits their own wants and tastes.
  • Support: PharmEasy offers ongoing support to franchisees, such as help with marketing, technology support, and inventory management.
  • Brand awareness: PharmEasy has already built up a lot of brand recognition, which helps franchisees. This can help them improve their businesses and bring in new customers.


  • High competition: The health care business is a very tough one, and India has a lot of other drugstore companies. This means that franchisees will have to come up with ways to make their businesses stand out and bring in new people.
  • Regulations: There are a lot of rules in the healthcare business, and franchisees will have to follow a number of them. This can be hard because the rules are often complicated and always changing.
  • Financial risks: Owning a franchise can be risky for your money because owners have to put a lot of money into their businesses. There is also a chance that the business won’t do well, which could cause money to be lost.
  • Management challenges: Franchisees will need to be good managers if they want to run their businesses well. This includes things like being able to handle goods, deal with customers, and sell your business.
  • Lack of experience: Running a PharmEasy business may be hard if you haven’t worked in the health care field before. The company wants partners to have worked in the healthcare field for at least two years.
  • Location: Where you put your business is important because you need to be in a busy area with a lot of people walking by. If you pick the wrong place for your business, it might not do well.
  • Marketing: You’ll have to spend money on selling your business if you want to get more customers. This can be hard because the market for health care is very competitive.


Starting a franchise with PharmEasy can be a lucrative and rewarding business opportunity for those seeking to partner with an established brand in the healthcare industry. With a minimum investment required, the franchisee can enjoy profits while providing quality and reliable healthcare services to their customers. By following these guidelines, you can start a successful franchise with PharmEasy and maintain a steady profit margin.

PharmEasy Franchise – F.A.Q

What are the requirements to start a PharmEasy franchise?

The candidate must be minimum 21 years of age, have a minim of 10+2 educational qualification and an investment capacity of minimum INR 5 lakhs.

What is the initial investment required to start a PharmEasy franchise?

The initial investment is usually between INR 5 lakhs to INR 10 lakhs, which includes the franchise fee, setup cost, marketing and promotion, and working capital.

What is the profit margin for a PharmEasy franchise?

The profit margin ranges between 15% to 30%.

How much commission does a franchisee receive on sales?

The commission usually ranges between 5% to 20%

How can I apply for a PharmEasy franchise?

You can visit the PharmEasy website and fill in the franchise application form, followed by attending an orientation session, signing the agreement, and making the initial investment

Hey everyone, Vishal here! I'm fascinated by the world of business, especially the exciting potential of franchising and spotting the next big idea. In my writing, expect a mix of in-depth franchise breakdowns, thought-provoking new business ideas, and practical advice to turn those ideas into reality.

Leave a comment