Hyderabad, August 5, 2025 — MedScore, a Hyderabad-based fintech startup, is revolutionising the pharmaceutical supply chain by helping distributors cut bad debts and manage credit risk through real-time data analytics. By aggregating billing and payment data from over 360 drug distributors and building credit profiles for more than 150,000 retailers, MedScore delivers actionable insights that empower distributors to extend credit responsibly and optimise cash flow.
Real-Time Credit Scoring for Pharma Trade
Distributors traditionally rely on informal, trust-based lending to retailers—often resulting in delayed payments and defaults that cascade through the supply chain. MedScore’s platform integrates directly with distributors’ ERP systems to capture billing frequency, payment timelines, and outstanding dues. Its proprietary scoring engine then assigns dynamic credit scores, reflecting each retailer’s evolving risk profile.
“Before MedScore, distributors had no way to quantify risk beyond gut feeling,” said Mannuri Vamshi Krishna, Founder & CEO of MedScore. “Our real-time analytics replace guesswork with data-driven credit decisions, reducing defaults and improving working capital for all stakeholders.”
Impact on Bad Debt Reduction
Since its launch in early 2024, MedScore has processed over 3,000 credit-risk reports daily and generated more than 1 million risk alerts. Distributors who adopted MedScore report a 30% reduction in overdue receivables within six months, translating to smoother cash flow and fewer order cancellations at the retailer end.
Rama Rao, CFO of Southern Pharma Distributors, shared: “MedScore’s insights enabled us to identify high-risk retailers before extending credit. We adjusted limits accordingly and cut our bad-debt ratio from 4.5% to 2.8% in a single quarter.”
Expanding Coverage and Functionality
Originally focused on tier-1 and tier-2 cities, MedScore now covers data from 210,000 pharmacies across India. The startup is also developing SafeCredits, a sector-agnostic extension of its core platform, to serve FMCG, retail, and manufacturing distributors facing similar credit-risk challenges.
“Trade credit is the lifeline of many B2B industries,” explained Krishna. “Our modular architecture lets us tailor credit-risk models to different sectors without reinventing the wheel.”
Driving Financial Inclusion
By formalising credit assessment, MedScore is enabling small retailers with limited banking history to build digital credit identities. Retailers that maintain timely payments see their scores improve, unlocking higher credit limits and better trade terms. This democratizes access to finance for businesses in underserved rural and semi-urban markets.
Investor Backing and Future Plans
MedScore raised ₹2.1 crore in its angel round and is now seeking $1 million at an $11–13 million post-money valuation to accelerate product development and geographic expansion. Funds will be used to deepen ERP integrations, enhance AI-driven analytics, and add features such as predictive cash-flow forecasting and automated collections workflows.
“We aim to become the CIBIL plus UPI for B2B trade,” said Krishna. “With robust data pipelines and machine-learning models, we plan to onboard 1,000 distributors and 200,000 retailers within the next year.”
Conclusion
As India’s pharmaceutical ecosystem grows in complexity, efficient credit-risk management has become critical to ensuring an uninterrupted medicine supply. MedScore’s data-driven platform not only reduces bad debts for distributors but also promotes financial discipline and inclusion at the retail level. With strong early traction and investor support, MedScore is poised to redefine trade-credit infrastructure across multiple B2B sectors.