Suresh Purohit (PharmaCupboard.com Founder)- Success Story
Suresh Purohit (PharmaCupboard.com Founder) – The Gujarat-based pharma e-marketplace PharmaCupboard allows pharmaceutical, chemical, and associated firms to sell off surplus APIs, excipients, intermediates, key starting materials, solvents, catalysts, and chemicals online.
The advent of technology has revolutionized every industry, and pharma is no exception. While B2B and B2B pharma startups flourish across the country, Vadodara-based PharmaCupboard stands out owing to its business model: allowing firms to trade surplus stock.
Founder Suresh Purohit, who launched his company in 2016, is one of the first to work on such a system. The firm is a pan-India e-marketplace for inventory liquidation that assists pharmaceutical, biopharmaceutical, chemical, and other related industries in selling unneeded goods.
Suresh was a chemical engineer and MBA who worked in the pharmaceutical sector for 14 years. He recognized that pharmaceutical and chemical firms had excess and trailing materials due to product changes and other internal/external circumstances. Such inventory, which might be utilized by other sectors, is generally thrown away.
E-marketplace for selling surplus inventory
PharmaCupboard offers inventory liquidation services for non-moving, slow-moving, and trailing amounts of materials. These are offered only when the items may be utilized lawfully and economically by purchasers. Surplus materials should not be of scrap grade; they must be in usable form for buyers.
The business enables the sale of active pharmaceutical ingredients (APIs; bulk drugs with a six- to seven-month shelf life), excipients, intermediates, key starting materials (KSMs), solvents, flavors, catalysts, byproducts, chemicals, and packing supplies.
“We now also assist in the sale of equipment and instruments for high-performance liquid chromatography (HPLC) and gas chromatography (GC),” Suresh adds.
PharmaCupboard was selected for Digital Pharma Innovation by CPhI India in 2017 and 2018. It was one of the 10 Best B2B Marketplace Startups in India for 2020, according to StartupCity Magazine.
Vadodara has several industries, including automobile manufacturing. The city is also known for its cotton textiles and carpets, which are some of the finest in India. It’s close to prominent cities such as Ahmedabad, Ankleshwar, and Mumbai, with quick access to Delhi, Hyderabad, and Bengaluru. Suresh claims that his father’s office being there assisted with operations.
“PharmacyCupboard has a small, passionate staff of four people. The firm has been built in such a way that it may be managed from anywhere in India using only a mobile phone and internet connection,” he adds.
Business and operations
Suresh mentioned that purchasers must register with the firm and submit a valid GSTIN. The startup charges them Rs 1,950 plus GST for six months, allowing firms to buy items. This is only applicable for six months.
After the trial period has passed, consumers must pay again to use the platform in order for them to make additional purchases. New users who register on the site are also entitled to a complimentary seven-day trial package so that they may become acquainted with it.
The seller’s situation is rather different. To list 25, 100, or 500 line items, they must purchase packages. Sellers may then post their items with a validity of three to six months after making the purchase. PharmaCupboard also offers bespoke premium and long-term consulting options.
“The sellers must fill out a product template with the items they wish to sell. They may also upload the goods themselves or allow PharmaCupboard to do it. We generally charge Rs 200 per line item plus GST for this service. There are three different tiers of packages, each containing 25, 100, and 500 line items.
Plans for the future
The company’s creator stated that the bootstrapped business was founded with a Rs 5 lakh seed investment. PharmaCupboard is now open to outside investment and forming partnerships with industry participants, according to its founder.
“When payment is received, the things become alive, revealing all information to purchasers who can then fill out a price against each item and seek more information from the vendor. When a customer fills out an interest form, the entire ‘lead to bargain’ chain is activated.” Suresh adds. “PharmaCupboard expects to grow at a rate of 20-22 percent on an annual basis. Once payment has been made, everything comes to life; the items reveal all information to buyers who can complete a price against each one and seek further information from the seller. When a buyer submits an interest form, the entire ‘lead to bargain’ chain is activated.’
PharmaCupboard, which is strong in Western, Northern, and Central India, aims to grow its presence in Southern India. It also wants to expand into international markets during the next several years.
According to several media reports, the Indian market for excess inventory is expected to be worth $30 billion in 2019.
“Our competition and potential partners are businesses that aren’t well-organized. There are hundreds of traders and players who operate in isolation. Our objective is to bring these companies out of the shadows. We’re open and run on technology, which sets us apart from the competition.,” Suresh adds.