Reliance: In its attempt to expand the scope of its digital business, Reliance Industries through its wholly-owned subsidiary Retail Venture acquired a majority equity stake in the online pharma marketplace Netmeds at a cash deal of around Rs 620 crore. Also Read: Mukesh Ambani No Longer World’s Fourth Richest Man After Drop In Net Worth

What is the acquisition?

Reliance Industries informed about the investment through an official statement on Tuesday.  According to the news agency PTI, the investment represents around 60 per cent holding in the equity share capital of Vitalic and 100 per cent direct equity ownership of its subsidiaries -- Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Pvt Limited.

Dadha Pharma, a Chennai-based company is basically promoting Netmeds. The Dadha family's pharmaceutical experience dates back to 1914, when they entered into the pharma retailing business and later into drug manufacturing in 1972.

What is the business model of Netmeds?

Vitalic Health combined with the subsidiaries is collectively known as Netmeds. Netmeds, is a fully licensed e-pharma website which offers authenticated prescription and Over the Counter (OTC) medicine along with other health products. It offers a pan-India solution for the online purchase of prescription medications to over 20,000 pin codes.

Conceptualised in 2015, Vitalic and its subsidiaries started the distribution business of pharma along with sales and business support services. One of the subsidiaries runs an online pharmacy platform, Netmeds which helps in connecting customers to pharmacists and ensures doorstep delivery of medicines, nutritional health and wellness products.

How it will aid Reliance Retail Ventures?

Reliance Retail Ventures Limited (RRVL) director Isha Ambani asserted that the investment is in sync with the company’s commitment to offering digital access for everyone across the country. “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," said Ambani.

In view of the acquisition by the Reliance subsidiary, Netmeds founder and CEO Pradeep Daddha  said this will offer them the opportunity to 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," Netmeds founder and CEO Pradeep Daddha added.