Reliance Industries on Tuesday announced the acquisition of a majority stake in Netmeds, the Chennai-based online pharmacy, for a cash consideration of around Rs 620 crore.
Under the terms of the deal, RIL subsidiary Reliance Retail Ventures Ltd will pick up a 60 per cent stake in Vitalic Health and a direct 100 per cent stake in three of its subsidiaries —Netmeds Marketplace, Tresara Health Private Ltd, and Dadha Pharma Distribution Pvt, the Mukesh Ambani-owned entity announced late on Tuesday night.
Speculation about the deal has been brewing for a while and it now sets the stage up for a battle royale in the online pharmacy space after Amazon launched its own venture that has already started accepting orders for both over the counter and prescription-based drugs in Bangalore earlier this week. It will also have to contend with existing players like 1Mg and Medlife.
Incorporated in 2015, Vitalic and its subsidiaries have been in the business of pharma distribution, sales, and business support services.
Netmeds connects customers to pharmacists and enables doorstep delivery of medicines, nutritional health and wellness products.
“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 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 our investment and partnership, Isha Ambani, director, RRVL said while commenting on the strategic investment.
“It is indeed a proud moment for Netmeds to join Reliance family and work together 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," said Pradeep Dadha, Founder & CEO, Netmeds.
Apart from pharmacy, analysts say that Reliance Industries will also increase its focus on online learning in the coming months. In 2018, it acquired around 73 per cent in education technology provider Individual Learning Pvt Ltd (Embibe).
In 2018, a RIL subsidiary had invested in KareExpert Technologies, a digital healthcare platform. Then there is the JioHealthHub app which allows users to book a test, get check-ups and store health data.
