Zota Health Care Commits INR 350 Cr to Dava India, Targets Up to 1,500 Pharmacy Stores

The capital raise marks a focused strategic push by the pharma company to strengthen its presence in organised retail pharmacy and expand access to affordable medicines.

Zota Health Care has completed a Rs 350 crore fundraise through a Qualified Institutional Placement.

As per reports, the pharmaceutical company has committed the entire proceeds to scaling Dava India, its retail-centric generic pharmacy chain, with plans to open as many as 1,500 new stores across India over the next two years.

The capital raise marks a focused strategic push by the pharma company to strengthen its presence in organised retail pharmacy and expand access to affordable medicines.

Zota Health Care, headquartered in Mumbai, is an integrated pharmaceutical company with operations spanning drug manufacturing, marketing, and distribution, alongside a growing retail pharma footprint.

And, Davaindia Generic Pharmacy, a brand of Zota Healthcare, has positioned itself as a low-cost alternative in India’s fragmented pharma retail market, offering high-quality generic medicines at significantly lower prices. It has expanded steadily in recent years, supported by a franchise-led model that enables faster geographic reach while keeping capital intensity relatively controlled.

Speaking on the fundraise, Director of Zota Healthcare, Himanshu Zota said, “Originally, we had planned up to Rs 500 crore, but later the management decided to raise Rs 300 crore plus Rs 100 crore green shoe option. The QIP closed successfully at Rs 350 crore.”

He added that the funds would be used solely for the growth of Dava India, stating, “In the same light, we will open more stores of Dava India.”

As part of the expansion plan, Zota Health Care expects each new Dava India store to generate monthly revenues of around Rs 2-2.5 lakh in its initial phase.

Over time, as customer footfall increases and local awareness improves, the company estimates that monthly revenues could rise to Rs 6-7 lakh per store within three to four years of operations.

The aggressive store rollout comes at a time when India’s pharma retail and digital health ecosystem is undergoing rapid change. Consumers are increasingly seeking affordable medicines, transparent pricing, and easy access, while policymakers continue to promote the use of generic drugs.

By doubling down on Dava India, Zota Health Care is seeking to align its growth strategy with these broader trends in the pharma and healthcare landscape.

Stay tuned for more such updates on Digital Health News