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Accel in talks to back Indian pharmacy startup Plazza

Plazza, a Bengaluru-based e-pharmacy startup founded in 2024 by former Zomato executive Aman Priyadarshi, is in talks to raise US$12 million to US$15 million.

The round is expected from Accel, Nexus Venture Partners, and Elevation Capital at a valuation of about US$45 million to US$50 million, said people familiar with the matter.

Existing backers including All In Capital and Better Capital are also expected to join the round, which would be Plazza’s second after a US$1.4 million raise in September 2025.

The company plans to use the funds to expand from two stores in Bengaluru to about 20 by year-end, one person said.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Plazza is building a franchise network beyond dark stores

  • Some rivals rely on dark stores for fast delivery. Plazza instead runs a franchise model called “Lifestores” 1.
  • Lifestores start as existing pharmacies that convert into Plazza-run outlets through a franchise deal. Plazza helps with inventory management, software installation, staff hiring, and customer acquisition through its platform. It splits profits with partner stores 1.
  • The approach comes from co-founder Aniruddha Sen’s earlier work at Kenko. The founders said limited control over service quality held back growth 1.
  • Plazza puts its average order value at 700 Indian rupees 1.

Plazza’s funding talks run into an unfinished e-pharmacy rulebook

  • India’s draft e-pharmacy rules from 2018 still are not final. Startups and platforms therefore work without a settled rulebook 2.
  • Industry bodies warn that a push for speed can weaken prescription checks for controlled substances. Mint cited misuse risks involving Schedule H drugs, which are prescription-only medicines in India, such as pregabalin 2.
  • Mint cited “ghost prescriptions” that can be forged or reused. In February 2023, the Central Drugs Standard Control Organisation (CDSCO), India’s national drug regulator, sent show-cause notices to 20 e-pharmacies. The list included Tata 1mg, Amazon, Flipkart, and Netmeds for allegedly selling drugs without valid licenses or prescriptions 2.
  • More capital can push faster delivery, which can draw more regulatory attention. The cited source does not establish any specific “overnight” shutdown risk 2.

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