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Mannuri Vamshi Krishna Founder & CEO of Medscore
India’s pharmaceutical sector is growing not just in size but in strategic global importance. Often referred to as the Pharmacy of the World, the country ranks third in drug production volume and supplies affordable, high-quality medicines to nearly 200 countries. The domestic industry is now projected to touch 130 billion dollars in market size by 2030 and scale up to an ambitious 450 billion dollars by 2047. While the manufacturing engine has matured and exports continue to thrive, one persistent vulnerability remains unresolved at home—how trade credit is extended, evaluated, and recovered across the supply chain. As pharma distribution becomes more layered and time-sensitive, fintech collaboration offers a transformative opportunity—bringing the power of data, intelligence, and structure to one of India’s most vital industries.
An Informal Architecture
Credit in pharma has long operated on verbal assurances and reputation. Small pharmacies, distributors, and regional wholesalers often transact without verified financial data or formal documentation. While such practices have historically enabled flexibility and rapid transactions, they also create a precarious structure that is vulnerable to defaults and liquidity bottlenecks. A distributor extending large credit to a retailer based solely on history may find themselves unable to recover dues or rotate stock effectively when payments stall. These credit blind spots are especially problematic in smaller cities and rural regions, where risk assessment is often nonexistent. Without a structured approach to lending, disruptions multiply silently and affect drug availability, trust between supply chain actors, and ultimately public health. The real risk lies not in the absence of funds, but in the absence of visibility.
The Fintech Advantage
Technology now offers a compelling counterbalance to these inefficiencies. With fintech platforms increasingly capable of parsing transactional data in real time, creditworthiness can be assessed using concrete behavior rather than legacy relationships. Payment timelines, billing frequency, order volume, and deviation trends now form the basis of dynamic risk profiling. These platforms are designed to integrate with existing workflows, offering fact-based credit scores specific to the pharmaceutical trade. Real-time alerts on shifts in repayment behavior, visual dashboards for at-a-glance financial health, and custom reports tailored to individual operational goals help actors across the chain take timely, informed decisions. The added layer of enterprise-grade security ensures that financial and operational data remain protected. As this intelligence becomes embedded into credit infrastructure, it transforms credit from a gamble into a governed system.
Matching Scale with Structure
India’s pharma landscape is evolving rapidly, aided in part by global shifts. The China +1 strategy has led many multinational firms to relocate manufacturing to India, and the country’s growing expertise in injectables, fermentation, and complex chemistry has only strengthened its appeal. With projected revenue growth of 9 to 11 percent in FY25 and a healthy talent pipeline of scientific professionals, the opportunity is immense. To keep pace, the financial backbone of the industry must evolve. Much like how APIs transformed digital banking—powering real-time credit checks, seamless integrations, and secure transactions—they are now driving similar efficiencies in pharma. Embedded within enterprise systems, these tools automate credit evaluations, flag risks as they arise, and ensure decisions are based on verified data. Even smaller chemists and distributors can now build credible financial identities rooted in actual performance, unlocking access to formal credit.
A System Redefined
India’s pharmaceutical ascent must be matched by financial systems that reflect its ambition. Legacy models of trust-based lending cannot support the complexities of a 450 billion dollar economy. The future of pharma distribution depends on whether the sector can embed intelligence into everyday transactions and redefine what financial reliability means at every tier of the supply chain. Fintech’s role is no longer confined to extending capital. It is about transforming access, de-risking operations, and supporting continuity. As the flow of funding into pharma services accelerates and technological capabilities deepen, lending must evolve from a transactional need into a strategic function. A system that understands behavior, flags deviations early, and promotes accountability not only supports business growth but safeguards access to essential healthcare. In this new era, credit that is driven by data becomes more than a financial tool. It becomes an engine of trust.