FILE
Reliance Industries Limited's retail arm has acquired a majority equity stake in online e-pharma company Netmeds for about Rs 620 crore. Foraying into the e-pharma business, Mukesh Ambani-led company will now take on Amazon which entered the market last week. In an announcement late Tuesday, the oil-to-retail conglomerate said Reliance Retail Ventures has acquired a majority stake in Vitalic Health Pvt Ltd and its subsidiaries -- collectively known as Netmeds -- for a cash consideration of around Rs 620 crore.
The investment represents 60 percent holding in the equity share capital of Vitalic and 100 percent direct equity ownership of its subsidiaries - Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Pvt Limited, according to a release by RIL.
RRVL Director Isha Ambani said that this investment is aligned with their committment to provide digital access for everyone in India. "The addition of Netmeds enhances Reliance Retail's ability to provide good quality and affordable health care 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 out investment and partnership," she said.
Vitalic and its subsidiaries, incorporated in 2015, are in the business of pharma distribution, sales, and business support services. Its subsidiary also runs an online pharmacy platform - Netmeds -- to connect customers to pharmacists and enable door step delivery of medicines, nutritional health and wellness products.
"It is indeed a proud moment for Netmeds to join Reliance family and work together to make quality healthcare affordable and accessible to every India. 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," Pradeep Dadha, Netmeds founder and CEO said.
AMAZON IN E-PHARMA BIZ
- In a bid to expand to more categories, Amazon launched an online pharmacy in Bengaluru. Amazon said its new service 'Amazon Pharmacy' started accepting orders for both over-the-counter and prescription-based medicines in Bengaluru.
- Amazon Pharmacy is also selling traditional herbal medicines and some health devices such as glucose meters, nebulizers and handheld massagers.
- Back in 2018, Amazon acquired online pharmacy startup PillPack for nearly $1 billion.
