The stage has been set, and the decks have been cleared now.
It’s Amazon, Flipkart vs Reliance in the ecommerce space as Reliance has just acquired online medicine biggie Netmeds for Rs 620 crore.
What is the purpose behind this mega acquisition? How will it help Reliance to beat Amazon and Flipkart?
Keep reading to find out more!
Reliance Acquires Netmeds For Rs 620 Crore
Reliance Retail has confirmed that they have acquired 60% stake in Netmeds for Rs 620 crore.
This gives Netmeds a valuation of around Rs 1000 crore.
Netmeds was founded by Pradeep Dadha, and offers online delivery of medicines, personal and baby care items, along with a facility to book doctors online for offline as well as online diagnostics.
As of now, Netmeds have been invested by Singapore-based Daun Penh Cambodia Group, Sistema Asia Fund, Tanncam Investment and healthcare-focused investment firm OrbiMed.
Why Reliance Acquired Netmeds?
Netmeds is right now one of the biggest online medicine portal, and by acquiring it, Reliance has jumped right into the thick of action in this sector.
Along with Netmeds, other prominent players in this niche are: PharmEasy, Medlife, 1mg.
Every online medicine provider in India is looking for a gig investor and a big investment round, and as per reports, Netmeds was desperately in need of a big funding, since margins are very low in this sector.
However, coronavirus and lockdown was the trigger, which inspired Reliance to go for this deal. As per reports, online sale of medicines increased by as much as 50% in the last few months, and Reliance knew that this is the time to jump into this sector.
As per MoneyControl, Reliance had been looking for a good, solid partner for venturing into the online medicine space, and Netmeds proved to be the best bet.
Isha Ambani, Director, Reliance Retail Ventures said, “The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable healthcare products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers.”
Amazon too had recently launched their online medicine service, which is facing protests from chemists all across the nation.
It would be interesting to watch the battle unfolding between Reliance, Amazon and Flipkart to grab the top slot in Indian ecommerce market.
We will keep you updated, as more details come in.