Days after the largest e-commerce company of the world Amazon.com Inc launched an online drug sales service in India, Reliance Industries Ltd has announced that it has acquired a majority stake in the online pharmacy Netmeds in an all cash deal worth $83.08 million.
Through the deal, about 60 per cent holding in Vitalic Health Pvt. Ltd. and 100 per cent direct ownership of its subsidiaries was acquired by the Indian oil-to-telecoms conglomerate, said Reliance late on Tuesday in India.
Founded in 2015, Netmeds collectively comprises of Vitalic and its subsidiaries. A licensed e-pharma portal, Netmeds offer authenticated prescription and over the counter medicine and a number of other health related products in India.
Following the spread of the novel coronavirus pandemic in India and the resultant trend of increase of online shopping by consumers stuck at home because of restrictions on movement in the Indian market has led to an increase in competition among online service providing companies including Amazon, Walmart-owned Flipkart, Reliance’s new online grocery service, JioMart as well as a host of other smaller players in the market. All are vying to get a larger share of the online industry of the second most populous country of the world.
While the Indian government has not yet released any final set of regulations to regulate the services of online drug sales, or e-pharmacies, traditional physical stores based drug sellers’ business are already being threatened by the fast growth of online pharma sellers such as Medlife, Netmeds, Temasek-backed PharmEasy and Sequoia Capital-backed 1mg.
Concerns against e-pharmacies have already been voiced by a number of retail, wholesellers and trader groups in India with these businesses arguing the e-phamra service growth will result in sale of medicines without proper verification.
(Source:www.deccanchronicle.com)
Through the deal, about 60 per cent holding in Vitalic Health Pvt. Ltd. and 100 per cent direct ownership of its subsidiaries was acquired by the Indian oil-to-telecoms conglomerate, said Reliance late on Tuesday in India.
Founded in 2015, Netmeds collectively comprises of Vitalic and its subsidiaries. A licensed e-pharma portal, Netmeds offer authenticated prescription and over the counter medicine and a number of other health related products in India.
Following the spread of the novel coronavirus pandemic in India and the resultant trend of increase of online shopping by consumers stuck at home because of restrictions on movement in the Indian market has led to an increase in competition among online service providing companies including Amazon, Walmart-owned Flipkart, Reliance’s new online grocery service, JioMart as well as a host of other smaller players in the market. All are vying to get a larger share of the online industry of the second most populous country of the world.
While the Indian government has not yet released any final set of regulations to regulate the services of online drug sales, or e-pharmacies, traditional physical stores based drug sellers’ business are already being threatened by the fast growth of online pharma sellers such as Medlife, Netmeds, Temasek-backed PharmEasy and Sequoia Capital-backed 1mg.
Concerns against e-pharmacies have already been voiced by a number of retail, wholesellers and trader groups in India with these businesses arguing the e-phamra service growth will result in sale of medicines without proper verification.
(Source:www.deccanchronicle.com)
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