Bengaluru: Reliance Industries is in talks with e-pharmacy Netmeds to acquire its major stake.
Reliance industries is in serious talks with e-pharmacy Netmeds to acquire a major stake in the company. According to the sources, Reliance Industry is opting to pay $130-150 million for obtaining a stake in the company. “The deal is happening at a slight premium to their last funding round valuation,” said the source.
Reliance Spokesperson said, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” adding that it will inform exchanges according to Sebi on any developments.
Netmeds started its operations back in 2015 and is a subsidiary of Dadha and Company, one of India’s most trusted pharmacy brand. Netmeds was founded in 2010 by Pradeep Dadha and is headquartered at Chennai. Pradeep Dadha family was first distributer of Sun Pharmaceutical.
The conversation between Reliance and Netmeds has been going on before the lockdown. Last year Reliance acquired 82% stake in Bengaluru based C Square Info Solution which makes software for distributers, retailers, sale force in the pharma sector for total 82 Cr.
Few days before Facebook agreed to invest $ 5.73 billion for 9.99% stake in Jio platforms.
Reasons for acquiring major stake in Netmeds
According to RedSeer Report, an e-pharma industry is about $ 1.3 billion market and in the next 5 years it going to reach $16 billion. 4 million households are opting to buy medicine online and the number is going to increase in the next few years. The e-pharma industry will be one of the most booming sectors in India.