26.

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2 0.25 million of litigation expenses relating to trademarks. Such legal action may have an impact on our profitability.

If we are unable to effectively implement our business and growth strategy and efficiently operate, optimize or
expand our storage and distribution network or pharmacy retail network, we may be unable to meet customer
demand, and our results of operations, financial condition and prospects may be materially and adversely affected.

The success of our business will depend on our ability to effectively implement our business and growth strategy. In the
past we have generally been successful in execution of our business strategy but there can be no assurance that we will be
able to execute our strategy on time and within the estimated budget in the future. If we are unable to implement our
business and growth strategy, this may have an adverse effect on our business, financial condition and results of operations.
While there have been no instances during the past three financial years and the six months ended September 30, 2021
where our business has been materially affected by a failure to expand our current businesses or our ability compete in new
markets, we cannot assure you that this will continue in the future.

Our pharmacy retail network presently comprises physical stores located across Tamil Nadu, Andhra Pradesh, Telangana,
Karnataka, Odisha, West Bengal and Maharashtra, and an online channel through our website and mobile application
(Source: Technopak Report). The success of our business will depend greatly on our ability to identify strategic locations
for opening new stores and expanding our operations. Our stores are geographically concentrated. As of March 31, 2019,
March 31, 2020, March 31, 2021 and September 30, 2021, an aggregate of 1,370, 1,449, 1,659 and 1,792 stores were
located in the states of Karnataka, Tamil Nadu, and Telangana and Andhra Pradesh, representing 82.88%, 81.63%, 79.72%
and 77.04% of our total stores, respectively. During the financial years 2019, 2020, 2021 and September 30, 2021, the
aggregate revenue of our stores in the top four states by revenue was 2 17,563.52 million, % 22,586.11 million,
% 23,926.62 million and 2 13,880.36 million, representing 77.28%, 78.68%, 77.96% and 73.83% of our revenue from
operations, respectively. A failure to expand our current businesses or compete in new markets may have an adverse effect
on our business and results of operations. From the financial years 2013 to 2021, our pharmacy retail business derived its
external sales from key markets in various metropolitan cities such as Hyderabad, Bangalore, Chennai, and Kolkata and
their surrounding districts. We intend to expand our footprint to additional regions in India. However, we cannot assure
you that we will be successful in expanding our pharmacy retail businesses as intended. Any delay in identifying, or failure
to identify, suitable locations expansion or extend geographical reach may adversely affect our business, financial condition
and results of operations.

As part of our growth strategy, we also aim to, among other things, expand our online channel, or operate, optimize or
expand our distribution and retail networks. Our ability to meet consumer demand may be significantly constrained if we
are unable to efficiently expand our online channel, or operate, optimize or expand our distribution and retail networks.
That said, in the future, we may open more stores than is sustainable at the time, and may be exposed to the risk of incurring
losses, reduced cash flows and lower margins. Further, we may expand into new verticals or services which we may not
be sufficiently familiar or experienced in, which may hamper the success of such expansion. Any such disruption may
result in increased costs or time associated with our stores and may cause a delay in our ability to service our customers.

From time to time, we may seek additional equity or debt financing to fund our growth, enhance our stores, respond to
competitive pressures or make acquisitions or other investments. Our business plans may change, general economic,
financial or political conditions in the operating markets may deteriorate or other circumstances may arise, in each case
that have a material adverse effect on our cash flows and the anticipated cash needs of our business. Any of these events
or circumstances could result in significant additional funding needs, requiring us to raise additional capital. We cannot
predict the timing or amount of any such capital requirements at this time. If financing is not available on satisfactory
terms, or at all, we may be unable to expand our business at the rate desired and our results of operations may suffer.
Financing through issuances of equity securities would be dilutive to holders of the Equity Shares.

The success of our planned expansion will depend on many factors, including our ability to optimize our pharmacy retail
businesses, form relationships with, and manage an increasing number of, customers nationwide. We also need to be able
to anticipate and respond effectively to competition posed by other retail pharmacies in new markets. If we fail to expand
our pharmacy retail businesses as planned or if we are unable to compete effectively with other distributors and retail
pharmacies in new markets, our business, financial condition and results of operations may be materially and adversely
affected.

Our business may be adversely affected by adverse news, scandals or other incidents associated with the Indian
pharmaceutical industry.

Incidents that reflect doubt as to the quality or safety of pharmaceutical products sold by other participants in the Indian
pharmaceutical industry, including by our competitors, have been, and may continue to be, subject to widespread media
attention. For example, in the past, there have been negative publicity relating to proposed and bans on online pharmacies
in certain markets. Industry bodies have also lobbied against and issued warnings to online pharmacies, and have
complained to drugs controllers and other authorities. For instance, in the past, certain chemists’ and druggists’ associations
have written complaint letters to the drugs controllers of certain states about our operations. Such incidents may damage
the reputation of not only the parties involved, but also the pharmaceutical industry in general, even if such parties or
incidents have no relation to us, our management, our employees, our suppliers, our distributors or our retail pharmacies.

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