RIL buys Majority Stake in Online Pharmacy Netmeds for $83 Million
Bangalore: RIL buys Majority Stake in Online Pharmacy Netmeds for $83 Million – Near about 6.2 billion rupees ($83.08 million) in a cash majority stake in online pharmacy Netmeds has been acquired by Reliance, days after e-commerce giant Amazon.com Inc launched a web drug sales service in India.
In an announcement on Tuesday Reliance said that its investment represents about 60% holding in Vitalic Health Pvt. Ltd. and 100% direct ownership of its subsidiaries.
Vitalic and its subsidiaries, collectively referred to as Netmeds, were incorporated in 2015. Netmeds may be a licensed e-pharma portal that gives authenticated prescription and over the counter (OTC) medicine alongside other health products in India.
With the huge increment in online shopping due to COVID 19 has led to increased competition between Amazon, Walmart-owned Flipkart, Reliance’s upstart online grocery service, JioMart and a variety of other smaller players for a share within the world’s second-most populous country.
The online drug sales rules and regulations are yet to be finalized, or e-pharmacies, but growth of online sellers like Medlife, Netmeds, Temasek-backed PharmEasy, and Sequoia Capital-backed 1mg has threatened traditional drug stores.
Many trader groups are against e-pharmacies, saying they might cause the sale of medicines without proper verification
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