Rio Health secures $4.5M pre-Series A for medicine delivery

Rio Health raised $4.5 million in a pre-Series A funding round led by Version One Ventures. The all-equity round saw participation from existing investors Xeed Ventures, Good Capital, and Amplify.

Founded in 2024 by Ankur Agrawal and Amit Ahuja, the startup delivers medicines and healthcare essentials within Delhi NCR in 20 to 30 minutes. The fresh capital will fuel an aggressive expansion of its dark store network and technology backbone.

Use of capital

The funds will be used to expand Rio Health's dark store footprint, strengthen its tech and operations, and target an annual recurring revenue of more than ₹150 crore within the next nine to 12 months. Specifically, the company plans to expand its Delhi-NCR network from three to more than 15 dark stores. It intends to set up 12 new dark stores and strengthen its capabilities across ordering, inventory, and delivery operations.

Business model and traction

Rio Health processes more than 30,000 orders a month, with nearly 80 percent coming from repeat customers. The company offers more than 20,000 stock-keeping units and maintains an average order value of ₹600-700.

Its model relies on neighbourhood-level demand data to forecast medicine requirements and stock its dark stores, each serving a radius of approximately three kilometres. Customers can order by speaking or typing in Hindi, English, or Hinglish, or by uploading a photograph of a prescription. An AI-led system identifies the prescribed products to create the order, which is then verified by a licensed pharmacist. For long-tail medicines not held in stock, the company can source items through its distributor network.

Market context

The funding arrives as quick commerce expands into regulated healthcare. Giants like Zepto, Blinkit, and Swiggy Instamart are exploring 10-minute medicine delivery. This segment requires licensed entities, prescription verification, and tighter controls around inventory and storage, unlike grocery delivery.

The broader Indian quick commerce market is projected to become a $30 billion to $40 billion opportunity in the next three to five years. Gross merchandise value for the sector is expected to rise from $8.3 billion in 2026 to $68 billion by 2031, an almost eight-fold increase at a 52 percent compound annual growth rate.

Founder and investor commentary

Rio Health cofounder Ankur Agrawal stated that the funding would help strengthen the company's technology and improve how it predicts neighbourhood-level demand. He said it would make reliable medicine delivery available to many more customers across Delhi NCR. Boris Wertz, a partner at lead investor Version One Ventures, also commented on the fundraise.

Rio Health plans to expand its Delhi-NCR network from three to more than 15 dark stores using the fresh capital.