Tuesday, September, 22, 2020 10:15:16

Reliance Retail announces $82.9M majority stake acquisition in Netmeds

Reliance Retail, a subsidiary of RIL (Reliance Industries Ltd.), has reportedly announced the acquisition of a majority stake in Netmeds, an online pharmacy delivery startup. This majority equity stake will be acquired for a cash consideration of nearly ₹620 crore ($82.9 million).

RIL has reportedly cited that the recent investment demonstrates a 60% holding in Vitalic’s equity share capital as well as 100% direct equity ownership of the company’s subsidiaries, which are Dadha Pharma Distribution Pvt. Ltd., Netmeds Market Place Ltd., and Tresara Health Pvt. Ltd. The deal came along the heels of the expansion of product offerings by its rival, Amazon, which has started marketing pharmaceutical products in Bangalore. In addition, PharmEasy and Medlife have planned to enter a merger deal to efficiently operate in the online pharmacy space as a combined entity.

According to RRVL’s Director, Isha Ambani, the recent agreement is aligned with the company’s commitment to drive digital access in India. It will enhance its capability to deliver high-quality and cost-efficient healthcare services and products through the addition of Netmeds. Moreover, it can broaden the digital commerce proposition by offering daily essentials to consumers.

Incorporated in 2015, Chennai-based Netmeds is among the leading players in the e-pharmacy space. Its services include connecting customers to the pharmacists and enabling door-step delivery of medicines and nutritional health & wellness products. It has raised nearly $100 million funds from investors including Daun Penh, Sistema, and Tanncam, serving over 4 million customers across nearly 610 cities and towns.

Pradeep Dadha, Netmeds’ Founder & CEO, has stated that the company is thrilled to join the Reliance family and significantly collaborate to create more value by increasing customers’ access to affordable products in India and providing the Omni Channel experience.

As per reliable sources, the India e-pharmacies market is anticipated to register a revenue of up to $3.6 billion (₹25,000 crore).

Source credit:

https://www.business-standard.com/article/companies/reliance-retail-acquires-majority-stake-in-netmeds-for-rs-620-crore-120081900007_1.html