INTRO: The e-pharma sector in India is seeing hectic M&A activities and new investments of late. Days after Amazon announced plans to launch a web pharmacy of its own within the country, Reliance Industries Limited (RIL) has announced that its subsidiary, Reliance Retail Ventures Limited (RRVL), has acquired a majority equity stake in Vitalic Health Pvt Ltd and its subsidiaries (collectively referred to as NetMeds) for a cash consideration of Rs. 620 crore (~$83 million).
Reliance Has Invested Collectively In Netmeds, Pharmeasy
In a Twitter message on Tuesday, the Founder and CEO of NetMeds, Pradeep Dadha, said that the deal will enable the corporate to continue its promise of being ‘India ki Pharmacy’ (India’s pharmacy) with the backing of India’s largest conglomerate.
According to Dadha: “Using cutting-edge digital technology, it’s our goal to form quality healthcare affordable to each Indian. With the combined strength of the digital, retail and tech platforms, we’ll soon strengthen the availability chain, link producers, consumer and healthcare stakeholders into a holistic network”.
Here’s to good tidings and new beginnings! [email protected] pic.twitter.com/sysKyLBumc
— NetMeds (@NetMeds) August 19, 2020
Will Provide healthcare products and services to people around the country.
In a separate statement, Isha Ambani, the RRRV director and therefore the daughter of RIL Chairman, Mukesh Ambani, said that the acquisition will help the corporate provide affordable healthcare products and services to people around the country.
Meanwhile, in what promises to be another massive move within the online pharma industry, PharmEasy has reportedly agreed to merge with a smaller rival, Medlife. According to filings with the Competition Commission of India (CCI), Medlife will sell 100% shares to API Holdings, the parent entity of PharmEasy, reciprocally for 19.59% ownership in the combined entity.
The move signals the beginning of consolidation during a sector that’s expecting heightened competition with the entry of deep-pocketed players like Reliance and Amazon. The news of the PharmEasy-MedLife merger was first reported by ET earlier today.