Zeno Health expects 30% ecommerce revenue by FY26 through expansion

Zeno Health, a Maharashtra-based pharmaceutical company focused on affordable medicines, is aiming to generate 30 per cent of its revenue through e-commerce sales for the financial year 2025-2026 as it expands its offering pan-India.

 

“Currently, around 15 per cent of our revenue comes from e-commerce, particularly through our app-based channel. We expect this to scale up to 30 per cent by FY26, driven largely by our pan-India expansion,” said Girish Agarwal, co-founder and chief operating officer of Zeno Health, to Business Standard.

 

The remaining 70 per cent will continue to come from its offline outlets. "Medicine is the highest out-of-pocket expense for Indians and also the highest-frequency category within healthcare. We saw an opportunity to offer high-quality medicines at significantly lower cost,” added Agarwal.

 

With a strong offline base in Mumbai and Pune, Zeno Health plans to expand into Tier II and III cities, starting with Bihar, driven by increasing demand. On the e-commerce front, it expects 50–60 per cent of revenue to come from these regions. Maharashtra currently contributes 35 per cent to its online sales, highlighting the growing role of digital channels in underserved markets.

 

Commenting on the e-commerce expansion, Agarwal noted that the company plans to build two to three fulfilment centres in each zone. It has also partnered with logistics providers such as Delhivery and Blue Dart. The broader goal, he said, is to raise awareness among users about the availability of high-quality alternatives, helping them make the switch and ultimately save money on their prescriptions. 

 

On the technology front, Zeno Health shared that it is deeply integrating AI and large language models (LLMs) into its engineering and analytics functions. Over the next two quarters, the company expects 80 per cent of its engineering development to be powered by LLMs, which is projected to triple its development velocity.

 

Moreover, the company highlighted that a similar transformation is underway in the analytics function, where it is working to democratize access to basic data insights—previously handled exclusively by analysts—by enabling employees to generate analyses through natural language prompts.

 

“We’re currently in the testing phase, and expect to go live in the next couple of quarters. This will enable advanced use cases like personalization, which is a key driver of our e-commerce strategy from both an AI and data science perspective.”

 

The pharma major noted that it has partnered with companies like Akums, its largest distributor, handling approximately 75–80 per cent of its medicines. Innova CapTab and Synokem also serve as key distribution partners.

 

Zeno Health, which competes with the likes of Tata 1mg and PharmEasy, differentiates itself through its core focus on offering high-quality generic alternatives at significantly lower prices.

 

“While most players focus on fulfilling prescriptions, we recommend affordable, high-quality alternatives—our main value proposition,” said Agarwal. “Other platforms typically offer 15–20 per cent savings, but we deliver average savings of 45–50 per cent.” With healthy gross margins of 30–35 per cent, Zeno Health operates in a segment that balances affordability with long-term viability.

 

Looking ahead, Zeno Health plans to introduce solution-based services on its e-commerce platform over the next three years. The company is currently focused on expanding its product categories, including pediatric and maternal healthcare needs.