 

 

 

 

 

 

 

 

 

 

 

Number of Stores, as of
State March 31, March 31, March 31, March 31, March 31, September
2010 2015 2019 2020 2021 30, 2021
Telangana 181 288 352 365 435 474
Andhra Pradesh 125 152 213 226 263 297
Karnataka 166 340 457 485 514 546
Tamil Nadu 101 231 348 373 447 475
West Bengal 22 105 139 148 183 224
Maharashtra 40 65 93 113 166 221
Odisha 0 18 51 65 73 89
Total 635 1,199 1,653 1,775 2,081 2,326

 

 

 

 

 

 

 

 

The table below sets forth a breakdown of (i) the number of stores and (ii) the select key cities in which the stores were located,
as of the dates indicated.

 

 

 

 

 

 

 

 

 

Number of Stores, as of
City March 31, March 31, March 31, March 31, March 31, September
2010 2015 2019 2020 2021 30, 2021
Chennai 62 185 246 264 286 304
Bangalore 110 244 281 311 330 340
Hyderabad 141 234 259 274 299 331
Kolkata 22 105 139 148 183 224
Total 335 768 925 997 1,098 1,199

 

 

 

 

 

 

 

At the same time, our streamlined and methodical store opening process, and focus on the sustainability and profitability of
each store, has allowed us to maintain healthy store level economics. 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 demonstrated a compounded
average same store sales growth of 8.3% on MRP from financial year 2019 to 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%. As of
September 30, 2021, our store network comprised of 2,326 stores, of which 55.25% of our total number of stores have been
opened since financial year 2018. We expect increased contribution from such stores as they mature and gradually achieve
higher growth rates and improved profitability.

High Density Store Network Enhancing Omni-channel Proposition

Weare the first pharmacy retailer in India to offer an omni-channel platform, according to the Technopak Report. Commencing
in 2015, our customers could either visit our stores or access our offerings online, through our website and mobile application.
Our customers have multiple options, including (i) purchasing products at one of our stores, or (ii) placing an order through a
telephone call to receive delivery of their purchased products, or (iii) placing an order online to receive delivery of their
purchased products, or (iv) “Click and Pick”, by placing an order online and picking up their purchased products from one of
our stores. Our “Click and Pick” proposition allows our customers the ease of showing their prescription at a store, in cases
where uploading the prescription online becomes a challenge. With our wholly-managed and operated last-mile delivery
infrastructure from our stores, we are now able to deliver our customers’ online purchases within two hours of purchase in
select cities of Hyderabad, Bangalore, Kolkata, Pune and Nagpur. These services were started in the financial year 2021, and
recent pilots conducted in July 2021, have showed promising results where 93% of online delivery purchases were delivered
within two hours in select micro-markets of Hyderabad. We expect to expand our ability to deliver online purchases within two
hours of purchase in cities such as Chennai and Mumbai by December 31, 2021.

 

Our omni-channel proposition to our customers leverages our existing store networks and supply chain and distribution network
to offer a differentiated offering to our customers. Our omni-channel proposition allows us to (i) deepen and extend our customer
reach from, and expand the total addressable market for, each of our stores, (ii) further enhance “convenience” as one of our
core customer value propositions, (iii) lower incremental cost of operations for online deliveries (as our stores act as branding
sites and lower cost of online customer acquisition), and (iv) retain offline and online customers within our customer ecosystem.

According to the Technopak Report, India’s e-commerce pharmacy retail market is expected to grow at a CAGR of
approximately 42% between financial year 2021 to financial year 2025, from 256,250 million to 2230,000 million. We believe
that we are well-positioned to benefit from a fast-growing India e-commerce pharmacy retail market, especially given our

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