Reliance takes on Amazon in e-pharmacy foray with Rs 620 crore NetMeds purchase

Reliance Industries Limited on Wednesday announced that it has acquired a majority stake in digital pharmacy startup 'Netmeds' through its subsidiary- Reliance Retail Ventures Limited (RRVL). The Netmeds deal now make Reliance among the leading players in the online pharmacy space and also brings it in direct competition with Amazon as the latter had last week forayed into selling prescription drugs online under the name 'Amazon Pharmacy' in Bengaluru.

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RRVL has acquired the stake in Netmeds' parent company Vitalic Health and its subsidiaries for around Rs 620 crores, the company declared on Wednesday. The deal will give Reliance Retail an approximately 60 percent stake Netmeds and 100 percent direct equity ownership of its subsidiaries including Netmeds Market Place Limited, Tresara Health Private Limited and Dadha Pharma Distribution Pvt Limited.

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Netmeds deal to strengthen Reliance e-commerce capabilities

The acquisition of Netmeds will further strengthen Reliance's e-commerce capabilities, especially after the launch of JioMart, which is presently delivering across 200 cities in the country and will soon expand to the other pin-codes. 

"This investment is aligned with our commitment to provide digital access for everyone in India", Isha Ambani, Director, RRVL said in a statement. "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," She added.

The announcement by Reliance comes at a time when the online pharma sector in the country is seeing a rush of investments from homegrown, overseas funds and is also witnessing mergers and acquisitions. 

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'Proud moment for Netmeds'

Netmeds' parent company Vitalic was founded in 2015 with its various subsidiaries Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Pvt Limited. The major promoters of Vitalic Pradeep Dadha and family ventured into the online pharma business after being involved in the wholesale, retail and manufacturing pharma sector in South India for over a century. Dadha in its statement said that it is indeed a 'proud moment' for Netmeds to join the Reliance family and to work together with them to make quality healthcare affordable and accessible to every Indian.

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