Reliance acquires online Pharmacy NetMeds

Reliance Industries through Reliance Retail acquires online Pharmacy biz of NetMeds (owned by Vitalic health Pvt. Ltd). Under thhe deal Reliance would acquire NetMeds for INR 620 crores. 

Deal includes 60% holding in the equity share capital of Vitalic and 100% equity ownership of its subsidiaries including Tresara Health Pvt. Ltd., Netmeds Marketplace Ltd., and Dadha Pharma Distribution Pvt. Ltd.  

With this acquisition, Reliance's entry into online Pharmacy space will have tough competition with existing players like 1MG, PharmEasy and newer entrant Amazon.

RRVL will further acquire equity stake in Vitalic, through a mix of secondary purchase and primary investment, for at least 80% stake by April 2024, with an option to increase to 100% ownership. Vitalic was incorporated in India on September 7, 2015. 

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

Vitalic is an early stage company, with a consolidated turnover of INR 221.02 crore, INR 304.74 crore and INR 184.23 crore, and Net Profit (Loss) of INR (184.35) crore, INR (192.95) crore and INR (74.69) crore in FY 2020, FY 2019 and FY 2018 respectively.