Mukesh Ambani’s Reliance Industries is in advanced discussions to acquire a majority stake in online pharmacy Netmeds as part of its broader play in commerce, said three sources familiar with the development to the TOI.
Netmeds is a fully licensed e-pharma portal that offers authenticated prescription and Over the Counter (OTC) medicine along with other health products. The company claims that it is the “first-to-market” to offer a pan-India solution for the quick online purchase and fast delivery of prescription medications and has served more than 5.7 million customers in more than 670 cities and towns.
The deal may see Reliance, through one of its subsidiaries, pay $130-150 million for the asset, which may also include a fresh infusion to expand the operations, said one of the sources mentioned earlier. “The deal is happening at a slight premium to their last funding round valuation,” said the source.
“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” said a Reliance spokesperson, adding that it will inform exchanges according to Sebi on any developments.
“It would not be productive to comment on media speculations at this stage,” said Dadha in an emailed response, while adding that Netmeds has tied up with Reliance Retail for supplying essentials like groceries to its customers.
The conversations between Reliance and Netmeds, which had also held talks with Walmart-owned Flipkart, had been going on before the coronavirus lockdown, sources said.
Netmeds, which started operations in 2015, has till date announced three rounds of funding totalling about $100 million. The company was started by Pradeep Dadha, whose family was one of the first distributors for Sun Pharmaceuticals. The company is promoted by Dadha Pharma, a Chennai-based company and backed by investors including MAPE Advisory, OrbiMed, Tanncam, Sistema and Daun Penh. The Dadha family’s pharmaceutical experience dates back to 1914, when they ventured first into the pharma retailing business and then into drug manufacturing in 1972.
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