Reliance Retail buys majority stake in online pharmacy Netmeds for Rs 620 crore
The oil-to-telecoms conglomerate said its investment represents 60% holding in Vitalic Health Private Limited and 100% direct ownership of its subsidiaries.
Reliance Industries Limited on Tuesday announced that its subsidiary Reliance Retail Ventures Limited has acquired a majority stake in online pharmacy Netmeds for Rs 620 crore.
In a filing with stock exchanges, the oil-to-telecoms conglomerate said its investment represents 60% holding in the equity share capital of Vitalic Health Private Limited and 100% direct equity ownership of its subsidiaries, including Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Private Limited.
Chennai-based Vitalic and its subsidiaries, collectively known as Netmeds, were incorporated in 2015, and are in the business of pharma distribution, sales, and business support services. Netmeds is a e-pharma portal that gives authenticated prescription and over-the-counter medicine along with health and wellness products.
“This investment is aligned with our commitment to provide digital access for everyone in India,” said Isha Ambani, director of Reliance Retail Ventures. “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.”
Pradeep Dadha, founder and chief executive officer of Netmeds, said it was a “proud moment” for the portal to join Reliance and make healthcare affordable and accessible to every citizen. “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,” he added.
Reliance Retail’s expansion came days after Amazon India launched an online pharmacy service in Bengaluru, adding that deliveries in other cities will start soon. It offers both over-the-counter and prescription-based drugs as well as traditional Indian medicines.