significant existing online operations, our pricing and discounting strategy, and our last mile delivery capabilities. We believe
that our business model, large scale of operations and cost-efficient operations allow us to be profitable, as compared to many
of the major e-pharmacy players, despite our pricing and discounting strategy.

Lean Cost Structure and Technology Driven Operations

We believe that our (i) scale of operations, (ii) wholly-managed and operated supply chain and distribution infrastructure, (iii)
strong and integrated technology backbone, and (iv) focus on maintaining cost efficient operations gives us an advantage over
our competitors. Key attributes of our cost structure and technology driving our operations include:

© Cost efficient procurement. Given our scale of operations, we have developed strong relationships with suppliers over
a period of time, which we believe has enabled us to procure products at more favourable rates than our competitors.
As the majority of our product procurement is conducted directly from pharmaceutical companies or their carry
forward agents, we are also more efficient with our procurement processes and are better able to manage replacement
of damage goods or the risk of pilferage. For the financial years 2019, 2020 and 2021 and the six months ended
September 30, 2021, 62.31%, 76.22%, 80.81% and 81.23%, respectively, of our purchases related to branded
pharmaceutical products were procured directly from pharmaceutical companies or their carry forward agents.

e — Efficient management and operation of infrastructure. We wholly manage and operate our integrated operational value
chain, including procurement, distribution, stores and our online application. We manage and operate a fleet of vehicles
and delivery personnel to facilitate the transportation of inventory between our warehouses and stores, generally
providing for daily inventory replenishment for our stores located in densely metropolitan areas and thrice per week
for stores in other cities.

¢ Technology driven operations. Our procurement, distribution and store infrastructure are supported by a robust and
integrated technology framework. Save for our enterprise resource planning software, which we licence for our use,
all of our software is developed and continuously enhanced in-house, using open source platforms, for which no licence
fees are required to be paid. Our procurement functions, warehouses and stores are all technology enabled. Our
centralized inventory management system is capable of real time tracking of sales and inventory levels at our
warehouses and stores. Our automated procurement and stock picking systems are driven by a real time analytics
platform. Our technology platform at stores allows (i) monitoring of sales, (ii) analysing customer purchase history
and (iii) predict fill rates at different stores in different cities based on underlying demand patterns, which allows for
continuously improving fill rates at each store with time.

e Large scale of operations leading to economies of scale. Our large scale of operations and dense store network also
allows higher efficiency in product distribution to our stores and use of work force, as we are able to enjoy significant
economies of scale by leveraging our cost efficient procurement, warehouses, vehicles and delivery personnel, and
technology infrastructure to serve more stores.

We believe that we have been able to synergise these operational attributes to harness significant economies of scale, which has
enabled us to enjoy higher margins.

Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team

Our business and operations are led by a well-qualified, experienced and capable management team, who come from diverse
backgrounds and various fields of expertise, such as medicine, finance, business and technology. Three members of our senior
management team are doctors, and intimately understand our business, our industry and the competitive landscape. The founder,
Managing Director and Chief Executive Officer of our Company, Gangadi Madhukar Reddy, holds a bachelor’s degree in
medicine and surgery from Sri Venkateswara University, and a master’s degree in business administration from the Wharton
School of Business, University of Pennsylvania. As both a doctor and an entrepreneur, he has played an instrumental role in
the strategic direction and the growth of our business, developing and maintaining key relationships with our shareholders,
business suppliers and other stakeholders. Our Board of Directors bring understanding of the pharmaceutical industry, retail
businesses and consumer brands in India.

Additionally, our Board of Directors is supported by an experienced management team, many of whom have worked with us
for several years, including Dr. Cherukupalli Bhaskar Reddy, our chief operating officer, who was previously a surgeon; Dr.
Surendranath Mantena, our chief operating officer — outlet operations, MedPlus Mart, who is a doctor and a US board-certified
internist, having practiced internal medicine in the United States; Mr. Hemanth Kundavaram, our chief financial officer, who
has previously worked at number of multinational corporations, including IBM Daksh Business Process Services Private
Limited, Thomson Corporation (International) Private Limited and Rockwell Collins (India) Enterprises Private Limited, and
has over 15 years of experience in corporate finance and accounting; and Mr. Lakshman Kandarpa, our chief retail officer, who
has extensive experience in retail management and has previously managed large teams with pan-India operations and large
brands, such as Aditya Birla Retail Limited, Pantaloon (Retail) India Limited and Arvind Brands Limited. We believe that our

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