Reliance buys majority stake in Netmeds: 5 things you should know about it

Reliance Industries Ltd has announced that it bought a majority stake in online pharmacy Netmeds for ₹620 crore. The deal gives Reliance Industries a 60% stake in Netmeds.

“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,” Isha Ambani, Director, RRVL said in a statement.

ALSO READ: Reliance acquires majority stake in Netmeds' parent firm Vitalic for ₹620 crore

Here are five things you should know about this deal:

-- Reliance Retail, which is a subsidiary of Reliance Industries Limited has acquired a majority stake in Netmeds.

-- This investment represents nearly 60% holding in the equity share capital of Vitalic Health Private Limited and 100% direct equity ownership of its subsidiaries.

-- Netmeds delivers both over-the-counter medication and more than 70,000 prescriptions drugs to over 20,000 pin codes spanning across 670 towns and cities in India.

-- Netmeds gives Reliance a foothold in a sector that is forecast to grow to 250 billion rupees by 2022, according to consultancy Frost & Sullivan.

-- RIL’s comes amid an intensifying competition by Amazon, wherein the Seattle-based e-retailer started delivering online drugs in Bengaluru last week.