e Value Pricing. Our mission was to setup a company that cuts inefficiencies in the supply chain using technology to
deliver better value to the customers. Over a period of time, as we have built scale, we have continued to further reduce
our costs that has allowed us to deliver more value to customer in the form of discounts that have increased from up
to 10% to up to 20% of the maximum retail price. We cater to a wide range of customers, including discount seekers,
customers with urgent needs and customers who value convenience. Our transparent pricing, with discounts based on
average order value, allows us to address the needs of different segments appropriately. We offer lower discounts to
customers with time-sensitive acute therapeutic needs and lower order value, as compared to higher discounts for price
sensitive customers with chronic therapeutic needs and larger order value.

© Convenience and Fulfilment. We focus on offering convenience to our customers by making a wide range of products
available across our offline and online channels. Our customers can either visit our extensive network of stores, where
we have a neighbourhood presence in most cities in which we operate, or access our offerings online, through our
website and mobile application, with the option of either picking up products at the store or having it delivered to
them. We believe that we have been able to develop a better understanding of our customers’ requirements through (i)
years of operational experience, (ii) active customer engagement, and (iii) leveraging our real time data analytics
platform, which allows us to monitor sales, inventory levels, and analyse customer purchase history for each of our
stores. This has allowed us to stock the appropriate selection and amount of products at our stores and also make
helpful product suggestions to our customers, to target high fill rates.

e 2-hour delivery capability. With our wholly-managed and operated last-mile delivery infrastructure from our stores,
we were able to deliver our customers’ online purchases within two hours of purchase, in select cities. 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.

e Engagement. Our stores present a consistent and uniform customer experience of offering genuine and good quality
pharmaceutical products and fast-moving consumer goods at affordable prices. Our stores are operated by trained staff,
who are aided by our real time data customer analysis and data, that we believe results in high levels of customer
engagement.

The core of our focus, which we believe is the driving force behind our success, has been on our ability to consistently deliver
compelling value propositions to our customers.

Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach

We have grown from operating our initial 48 stores in Hyderabad at the conception of our business in 2006 to operating India’s
second largest pharmacy retail network of over 2,000 stores, distributed across Tamil Nadu, Andhra Pradesh, Telangana,
Karnataka, Odisha, West Bengal and Maharashtra, as of March 31, 2021, according to the Technopak Report. We employ a
data-analytics driven cluster-based approach to our store network expansion, whereby we first achieve high store density in a
densely-populated residential area within a target city before expanding our store network in the surrounding areas within that
city, followed by expansion into other adjacent cities. We believe that this approach (i) allows us to create high brand visibility
for customers within our key cities, through focused implementation of marketing and advertising initiatives, (ii) leads to our
achieving a leading market share in our key cities, (iii) allows us to replicate similar success in adjacent under-served cities and
areas, as we develop presence in existing clusters and develop new clusters, and (iv) increase cost efficiency due to economies
of scale achieved in our supply chain and inventory management. We focus on extending and maintaining an efficient supply
chain and distribution network to support the growth of established and new clusters.

We have a streamlined and methodical store opening process that is focused on the sustainability and profitability of every new
store that we roll-out. Our employees are incentivized and equipped to identify potential new store locations and we have
dedicated operations and business development teams at the area, city and state levels that would vet and approve the opening
of new stores by following a defined store roll-out framework. We seek to ensure that each new store would be in a catchment
area serving at least 10,000 to 15,000 people. Our stores are generally of small sizes, approximately 550 to 600 square feet,
with uniform design, format and layout, which lend to very short lead times between store location identification, set-up and
commencement of operations. Our store roll-out framework also allows us to inexpensively fit out our stores, where, capital
expenditure to fit out a store would be approximately 20.60 million. Each of our stores would generally only require three to
five staff members. Our technology based monitoring of inventory gives us multiple advantages, including (i) maintaining
optimum inventory levels at the store, (ii) visibility of stock that is close to expiring, and (ii) enabling us to strategically transfer
slow moving inventory from one store to another store, where the same inventory is experiencing higher demand.

Leveraging our cluster based expansion approach, we have experienced substantial growth in terms of our number of stores.

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

150
