PharmEasy expands into AI physiotherapy as investors push for profits

PharmEasy wants to be more than the app consumers open when the medicine cabinet runs empty. The API Holdings-owned company, one of India's earliest online pharmacies, has steadily expanded into diagnostics, doctor consultations, vaccinations, elder care, and nursing services. Its latest move—AI-powered online physiotherapy—signals a broader ambition to keep customers engaged long after a prescription has been delivered.

"Healthcare isn't a single interaction—it's a lifelong journey," Gaurav Verma, chief business officer at PharmEasy, tells Fortune India. "Our goal is to bring all these touchpoints together into one seamless, trusted ecosystem."

The launch comes at a time when the company is attempting to strengthen customer engagement while navigating investor expectations around profitability. Rather than relying solely on medicine delivery, PharmEasy is broadening its digital healthcare offerings in an effort to increase customer lifetime value and position itself as a comprehensive healthcare platform.

What does PharmEasy's AI physiotherapy platform offer?

The new service allows patients to enter their symptoms and use their smartphone camera for AI-driven posture and movement analysis designed to identify the root cause of pain rather than merely treating symptoms. The software then creates a personalised home recovery plan, while certified physiotherapists monitor patient progress through video consultations.

According to PharmEasy, the platform covers more than 250 conditions, including knee, back, shoulder and neck pain, frozen shoulder, post-operative rehabilitation, and maternity rehabilitation. The service is backed by over 60 physiotherapists, with consultations starting at ₹99.

"It has the potential to make a visit to a physiotherapist dispensable for minor issues," says Dr. Jyoti Das of the Birla Institute of Management Technology (BIMTECH). "Patients can now manage their own physiotherapy in the comfort of their home. The costs will come down significantly and the facilities will be available 24x7."

Verma, however, is careful to emphasise that technology is intended to complement medical professionals rather than replace them. "AI should augment healthcare professionals, not replace them," he says.

How competitive is the AI physiotherapy opportunity?

PharmEasy is not entering an untapped market. Specialised platforms such as Fix Health, Phyt.health and Shark Tank-featured FlexifyMe have been offering AI-enabled physiotherapy for years, while larger healthcare platforms including Practo and MediBuddy also operate in the space. PharmEasy's advantage lies in its ability to cross-sell the service to its existing pharmacy and diagnostics customer base, reducing customer acquisition costs compared with standalone startups.

The opportunity itself is significant. Chiratae Ventures estimates that 35–40 crore Indians live with chronic musculoskeletal pain, while India has only 0.6 physiotherapists per 10,000 people against the World Health Organization's recommended minimum of 1.0. The physiotherapy market, valued at around $1 billion in 2022, is projected to approach $1.9 billion by 2030, with digital physiotherapy expected to grow even faster. The broader digital healthcare market in India is forecast to expand from roughly $2.7 billion in 2022 to about $37 billion by 2030.

Competition, however, remains intense. Tata 1mg reported a 22% increase in revenue to ₹2,392 crore in FY25 while narrowing losses as it moved closer to break-even. Apollo is carving out a combined pharmacy-and-digital healthcare business for a future listing. PharmEasy continues to maintain the widest footprint, but its FY25 revenue growth lagged behind both rivals.

Can AI help drive PharmEasy's turnaround?

The company is pursuing this expansion while continuing its recovery from one of the sharpest valuation corrections in India's startup ecosystem. After reaching a valuation of $5.6 billion in 2021, debt-funded acquisitions and a breached Goldman Sachs loan led to an approximately 90% valuation cut to nearly $700 million in 2024, alongside the shelving of its proposed ₹6,250 crore IPO.

There are signs of improvement. API Holdings reported a 4% increase in revenue to ₹5,980 crore in FY25, while net losses narrowed 38% to ₹1,572 crore from ₹2,534 crore. But this second straight year of narrowing owes more to lower finance and one-off costs than to growth—revenue was near-flat after a 14% decline in FY24, and the company remains EBITDA-negative.

The AI physiotherapy initiative fits that pivot. It is an inexpensive software-led offering built on infrastructure the company already owns, aimed at improving customer retention and lifetime value rather than requiring heavy capital expenditure, the company claims. The expansion is also supported by earlier fundraising efforts, including a ₹3,500 crore rights issue in 2024 and ₹1,700 crore of debentures in 2025 backed by a pledge of 61% of diagnostics arm Thyrocare.

Who is shaping PharmEasy's next phase of growth?

The company's direction is increasingly being shaped by its investors. API Holdings' shareholder base includes Prosus, Temasek, TPG Growth, CDPQ and 360 One, while Ranjan Pai's MEMG has emerged as one of its largest shareholders with an estimated stake of over 12% and a board seat linking the company with the Manipal Hospitals ecosystem.

All four co-founders have stepped away from executive roles. Former CEO Siddharth Shah exited in August 2025 and was succeeded by Thyrocare chief Rahul Guha, underscoring a management approach focused on operational discipline and profitability.

API Holdings has dismissed speculation about an imminent listing, stating that no such plans are "under evaluation or consideration."

The strategy appears coherent. Whether connected, AI-led healthcare services can ultimately deliver the profitable growth investors now expect will determine the company's next chapter.