Reliance to take on Amazon in e-pharmacy space with NetMeds acquisition
BENGALURU: Mukesh Ambani's Reliance Industries Limited will now take on Amazon in the online pharmacy space by acquiring Chennai-based startup NetMeds.
The 100% acquisition of NetMeds is being done by the retail arm Reliance Retail Venture Limited (RRVL), which will also pick up a 60 percent majority equity stake in the parent company Vitalic Health Limited for Rs 620 crore, RIL said in a statement. This translates into a valuation of over Rs 1,000 crore for the company.
The announcement comes at a time when the online pharma sector in the country is seeing a rush of investments from homegrown, overseas funds and is also witnessing mergers and acquisitions.
The country's largest e-tailer Amazon last week announced that it has launched its e-pharmacy vertical and will be selling prescription medicines in Bengaluru along with the non-prescriptional and conventional Ayurvedic/unani drugs.
Rival Flipkart is also reportedly in talks with various stakeholders in the health tech space to venture into the segment.
For Reliance, the acquisition of NetMeds will strengthen its e-commerce capabilities especially after the launch of JioMart, which is now delivering across 200 cities in the country and will soon expand to the other pincodes.
"This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail's ability to provide good quality and affordable healthcare products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers. We are impressed by Netmeds' journey to build a nationwide digital franchise in such a short time and are confident of accelerating it with our investment and partnership," Isha Ambani, Director, RRVL said in a statement.
NetMeds' parent entity Vitalic was founded in 2015 with its various subsidiaries Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Pvt Limited. The major promoters of Vitalic Pradeep Dadha and family ventured into the online pharma business after being involved in the wholesale, retail and manufacturing pharma sector in South India for over a century.
"It is indeed a proud moment for Netmeds to join the Reliance family and to work together with them to make quality healthcare affordable and accessible to every Indian. With the combined strength of the group's digital, retail and tech platforms, we will strive to create more value for everyone in the ecosystem, while providing a superior Omni Channel experience to consumers," Dadha said in a statement.