Our revenue growth from period to period can vary according to the level of maturity of our stores for the respective periods.
The revenue a store generates depends on its stage of operation. Generally, revenue generated by a new store is lower at its
initial stage of operation and tends to increase after the first few years of operations as the store gains traction with and loyalty
from customers within its catchment area. Following this initial stage, growth in the revenue and profitability of a store will
also depend on various factors such as rate of growth of the domestic economy, competition, product mix, and our ability to
manage our operational expenses and costs. Between April 1, 2018 and September 30, 2021, we opened an aggregate of 1,158
new stores, and as of March 31, 2021, over 60.0% and 75.0% of our new stores achieved a positive Store Level Operating
EBITDA within the first three months and first six months of operations, respectively. Further, as of September 30, 2021, our
Mature Stores had a median payback period of less than 3 years and recorded a compounded average same store sales growth
of 8.30% on MRP from financial year 2019 to financial year 2021, despite the impact of the first wave of COVID-19 infections
and the nationwide lockdown that occurred in financial year 2021. For the financial year 2021 and the six months ended
September 30, 2021, our Store Level Operating EBITDA Margin for Mature Stores was 11.0% and 11.58%, respectively, and
our Store Level Operating ROCE for Mature Stores for the financial year 2021 was over 60%

Our strategy is to capitalize on shift from unorganized to organized retail of pharmaceutical products in India, and take
advantage of the low base of organized pharmacy retailer penetration and increasing penetration of mobile and internet usage
in India, and strengthen our market position by (i) increasing our store penetration in existing clusters and (ii) developing new
store clusters in other states and cities. We generally intend to enter into one to two new states and/or cities every year.

Sales Volume

Our sales volume is an important factor driving our results of operations. For the financial years 2019, 2020 and 2021 and the
six months ended September 30, 2021, our total number of bills cut was 71.37 million, 78.19 million, 72.72 million and
43.69 million, respectively, with sales volumes in financial year 2021 and the six months ended September 30, 2021 being
impacted by the first and second waves of COVID-19 infections and the nationwide lockdowns that occurred in those periods,
respectively. Historically, an increase in total number of bills has led to an increase in our revenue from sales. Our sales volume
is generally correlated with a number of other factors, including, among other things, the expansion of our store network and
number of stores, the increase in the volume of our online sales, the range and mix of our product offering, and our ability to
maintain and enhance our value proposition to customers.

Increased sales volume favorably affects our results of operations as it generally has the effect of increasing our revenues, and
also enables us to leverage our wholly-managed and operated supply chain and distribution infrastructure, benefit from
economies of scale in procurement, and increase our operating margins.

Product Range and Mix

We offer a wide range of products, including (i) pharmaceutical and wellness products, including medicines, vitamins, medical
devices and test kits, and (ii) fast-moving consumer goods, such as home and personal care products, including toiletries, baby
care products, soaps and detergents, and sanitizers, so as to cater to a wide range of customers, including discount seekers,
customers with urgent needs and customers who value convenience.

Our ability to grow our sales volume, revenue and gross margins, in part, also depends upon the range and mix of products that
we offer at our stores. Our (i) offering a wide range and appropriate mix of products supports our value proposition of
“convenience” and “fulfilment” to our customers, see “Our Business - Our Competitive Strengths - Established Brand and
Value Proposition to Customers” on page 149, which drives sales volume and revenue, and (ii) increasing our share of private
label products and enhancing our SKU mix, is expected to increase our customer wallet share and allow us to derive higher
gross margins. In financial year 2021 and the six months ended September 30, 2021, we introduced around 500 and 130 new
private label SKUs, respectively, and we intend to continue to grow our portfolio going forward.

We intend to (i) increase the penetration of our private label pharmaceutical products by introducing private label products for
more therapeutic areas, in particular for sub-chronic and chronic ailments and (ii) introduce new private label products for fast
moving consumer goods (“FMCG”), in particular, in the consumer categories of nutrition and wellness. To increase our sales
of private label products, we also plan to (i) market and advertise our private label products as good quality products offered at
competitive prices and (ii) continue to train our sales staff and award them with financial incentives for identifying customer
needs and cross-selling our private label products, and supporting them with enhancing our technology framework that would
provide them point-of-sale assistance and prompts.

Operational Expenses and Costs

Substantially all of our warehouses and stores, as well as our registered and corporate office, are operated on premises that we
have leased on a long-term leasehold basis. As such, we expect to continue to be affected by any future rental increases.
Furthermore, when our current leases expire we will need to re-negotiate these leases with the relevant lessors, who may seek
to impose higher costs or more onerous conditions on us.

Our store operating costs include, among others, cost of human resources, utilities and maintenance. These costs and expenses
can fluctuate and also differ from store to store depending on a variety of factors. For example, power tariffs vary from state to
state in India. Furthermore, regulations affecting manpower costs such as rules relating to minimum wages, may also vary from
state to state. Inflation increases our operating costs. Fixed operating costs increase as we open new stores. In general, we expect

286
