Reliance Retail Ventures Limited acquires majority of stake in e-commerce pharmacy

RIL made an announcement on Tuesday that Reliance Retail Ventures Limited, its subsidiary has acquired a majority of equity stake in Vitalic Health Pvt. Ltd. and its subsidiaries ( known as ‘Netmeds’) for around Rs 620 crores. The deal gives Reliance Industries Limited an entry into another vertical in e-commerce space, one which has soared during the coronavirus pandemic.

The investment represents 60% of holding in the equity share capital of Vitalic and 100% of direct equity ownership of its subsidiaries that are Tresara Health Private Ltd., Netmeds Market Place Ltd. and Dadha Pharma Distribution Private Ltd. The deal has brought the India’s largest company directly against Amazon,the e-commerce giant  in the battle of e-commerce pharmacy which is currently the burning issue. Just last week, Amazon India who rolled out its e-pharmacy service in Bangalore last week, also plans to launch the service in the entire country soon.

The announcement came just after the reports related to Reliance Industries Limited led by Mukesh Ambani looking forward to buy online furniture brand, Urban Ladder and Milkbasket, milk delivery platform as the company aims to compete with the e-retail giants like Amazon and Flipkart in the e-commerce segment. Reportedly the conglomerate is also in talks to acquire the lingerie retailer Zivame though its discussions for a possible merger of Future Retail with its retail arm, Reliance Retail are still on. 

Note that incorporated in 2015, Vitalic and its subsidiaries are in the business of pharma distribution, sales, and business support services. Its subsidiary also runs an online pharmacy platform, Netmeds which connect customers to pharmacists and enable the doorstep delivery of medicines, nutritional health and wellness products.

Isha Ambani, RRVL Director while speaking about investment said that, “This investment is aligned with our commitment to provide digital access for everyone in India. The addition of Netmeds enhances Reliance Retail’s ability to provide good quality and affordable health care products and services, and also broadens its digital commerce proposition to include most daily essential needs of consumers. We are impressed by Netmeds’ journey to build a nationwide digital franchise in such a short time and are confident of accelerating it with our investment and partnership.”.

 “It is indeed a proud moment for “Netmeds” to join Reliance family and work together to make quality healthcare affordable and accessible to every Indian. With the combined strength of the group’s digital, retail and tech platforms, we will strive to create more value for everyone in the ecosystem, while providing a superior Omni Channel experience to consumers.”, said Pradeep Dadha, Netmeds, Founder & CEO.


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