Reliance Industries Acquires Majority Stakes In NetMeds For Rs 620 Crores

• Reliance Industries enters on e-pharmacy segment by acquiring majority stakes in NetMeds.
• NetMeds is a fully licensed e-pharma portal that allows users to buy prescription and Over the Counter (OTC) medicine along with other health products.
• The investment represents approx 60% stakes in NetMeds for Rs 620 Crores

Mukesh Ambani owned Reliance Industries Limited is now all set to enter in the online medicine delivery segment by acquiring majority stakes in NetMeds for Rs 620 Crores.

According to the reports, Reliance Industries wholly-owned subsidiary Reliance Retail Pvt. Ltd. has invested Rs 620 crores in Vitalic Health and its subsidiaries collectively known as NetMeds for the 60% majority stakes in the company.

Furthermore, The investment represents 60% holdings in the equity share capital of Vitalic Health and 100% direct equity ownership of its subsidiaries including Tresara Health Private Limited, Netmeds Market Place Limited, and Dadha Pharma Distribution Pvt Limited.

“This investment is aligned with our commitment to provide digital access for everyone in India," said Isha Ambani, Director, Reliance Retail Ventures (RRVL).

"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," she said.

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Moreover, This acquisition gives Reliance Retail entry into vertical e-commerce space, one of the few that has soared during the COVID-19 pandemic, in addition to its online grocery platform JioMart.

The company NetMeds was founded in the year 2015 by two fellow entrepreneurs Pradeep Dadha and Bruce Schwack. The company currently delivers medicines, personal and baby care items, and provides doctor bookings and diagnostics on its website and app.

According to the reports, NetMeds was looking for a buyer for nearly a year now, after it was unable to raise funding. RIL can boost up the growth of NetMeds by investing in it.

NetMeds investors includes Singapore-based Daun Penh Cambodia Group, Sistema Asia Fund, Tanncam Investment and healthcare-focused investment firm OrbiMed.

Earlier this month, an E-commerce major Amazon rolled out its own online medicine delivery service named Pillpack. Meanwhile, Flipkart is also in its way to launch its own online medicine delivery service.

On the other hand, online e-pharmacy startup, Pharmeasy, and any other small startup are struggling for fundings and have been battling for survival in this segment.

According to the Business Standard report, Pharmeasy agreed to merge with smaller rival Medlife, an online medical shop, filings with India's antitrust body reveal.