Indian conglomerate Reliance has bought a majority stake in online pharmacy Netmeds for $83 million, opening a new front in its battle with Amazon which launched a similar healthcare service last week. This is as per a report in the Economic Times.
Reliance, which is owned by Asia’s richest man Mukesh Ambani, has been fighting the US tech giant and Walmart-backed Flipkart for a share of the country’s lucrative e-commerce market.
Reliance said the investment represented about a 60 percent share in Vitalic Health Pvt. Ltd. and 100 percent direct ownership of its subsidiaries, collectively known as Netmeds.
Netmeds has served 5.7 million customers across India, allowing them to order prescription and over-the-counter medicines as well as health supplements via its website and app.
“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 added.
Last week Amazon, owned by Jeff Bezos, the world’s richest man, launched its own online pharmacy in India, initially only in Bangalore, expanding services it already offers in the US and several European countries.
Meanwhile, online medical store PharmEasy has agreed to merge with smaller rival Medlife, lings with India’s antitrust body show. The move heralds the first big consolidation play in a sector that has seen heightened competition and entry of deep-pocketed players like Reliance Industries & Amazon.
Medlife will sell 100% shares to API Holdings, the parent entity of PharmEasy, in return for 19.59% ownership in the combined entity, according to the ling with the Competition Commission of India (CCI). Both firms have formally requested CCI to approve the proposed merger.
India’s digital health market is forecast to explode from around $4.5 billion in the current financial year to $25 billion by 2025, according to consulting agency RedSeer.
