The retail unit of RIL has acquired majority equity in online pharma company Netmeds for around Rs 620 crore.
The move directly confronts Amazon which forayed into the e-pharma business last week. Reliance conglomerate said Reliance retail ventures has acquired a majority stake in Vitalic Health Pvt. Ltd and its subsidiaries are collectively known as Netmeds. The investment represents around 60 per cent of the holding in equity shares and 100% direct equity ownership.
“This investment is aligned with our commitment to provide digital access for everyone in India,” said Isha Ambani, director of Reliance Retail Ventures.
Netmeds has its roots way back in 1914. The company is promoted by the Dadha family, having pharmaceutical experience for over a decade. They first ventured into the pharma retail business and then into drug manufacturing in 1972. Netmeds provides a platform to connect customers directly to pharmacists and enable a door to door delivery. The venture is planning to enable remote delivery as well.
The market is showing a lot of vitality to the e-pharma business this week. With the launch of ‘Amazon Pharmacy’ in Bengaluru, Amazon has also started pilot projects in major cities. A similar sign has been shown by Walmart owned Flipkart, they are planning to foray into the pharma space. This could be an interesting turn of event in the coming years.
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