- RIL said late Tuesday that its retail unit acquired a majority stake in the online pharmaceutical company Netmeds for around Rs 620 crore
RIL said late Tuesday that its retail unit acquired a majority stake in the online pharmaceutical company Netmeds for around Rs 620 crore, taking directly on Amazon, which forayed into the e-pharmacy business last week.
Reliance (RIL) has acquired a majority stake in Vitalic Health Pvt, the oil-to-retail conglomerate said. Ltd and its subsidiaries for a cash valuation of about Rs 620 crore — collectively known as Netmeds.
The late Tuesday evening announcement (local time) comes days after Amazon struck a deal with Netmeds, 1 mg, PharmEasy, and Medlife to sell medicines in Bangalore online. This was the first time that Amazon extended to that level, this added. The coronavirus pandemic has boosted the country’s adoption of pharma and telemedicine marketplaces, analysts said.
This fund accounts for about 60 percent of Vitalic’s equity capital and 100 percent of its subsidiaries’ direct equity holding, namely: Tresara Health Private Ltd, Netmeds Market Place Ltd, and Dadha Pharma Distribution Pvt Ltd.
“This investment aligns with our dedication to providing digital connectivity for all in India,” said Isha Ambani, Reliance Retail Ventures’ CEO.
“The introduction of Netmeds improves the capacity of Reliance Retail to provide high quality and accessible healthcare goods and services, as well as broadening its plan for digital commerce to cover most everyday critical customer needs,” she said.
Incorporated in 2015, Vitalic and its affiliates are in the pharmaceutical distribution, sales, and business support services business. Its subsidiary also operates an online pharmacy platform – Netmeds – to connect customers to pharmacists and enable medications, nutritional health, and wellness items to be delivered at the doorstep.
Netmeds is promoted by a Chennai-based company called Dadha Pharma. The pharmaceutical history of the Dadha family dates back to 1914 when in 1972, Reliance Industries said in a statement, they went first into the pharmaceutical retail sector and then into drug manufacturing.
“To join the Reliance family and work together to make quality healthcare affordable and available to every Indian is indeed a proud moment for ‘Netmeds.’ With the combined strength of the group’s digital, retail and tech platforms, we will strive to create greater value for everyone in the ecosystem, while providing consumers with a superior Omni Channel experience, “said Netmeds founder and chief executive, Pradeep Dadha, in a statement.
In the past few weeks, the e-pharmacy company has seen a lot of action. While Amazon launched its ‘Amazon Pharmacy’ last week in Bengaluru and will be conducting pilots in other cities, a study from the Times of India indicates that Walmart-owned Flipkart is also looking to foray in
Earlier Tuesday, PharmEasy agreed to merge with smaller rival Medlife online medical shop, filings with India’s antitrust body reveal. The merged company could be estimated at around $1.2 billion, Business Standard said.
Reliance Industries (RIL) shares closed at Rs 2,118.75 1.31 percent higher prior to the announcement of Netmeds deal. They have jumped from the lows seen in March to 144 percent.