Reliance Retail has procured a 60% stake Vitalic for about $83.2 million, it said today, as India’s largest retail chain looks to expand into new categories and compete more closely with American e-commerce group Amazon.
Reliance Retail said the deal, which grants it a 100% ownership of Vitalic’s subsidiaries (Netmeds, Tresara, and Dadha Pharma), valued the parent firm at about $134 million.
Netmeds, which connects customers to pharmacists and enables door step delivery of medicines, serves 5.7 million customers in more than 670 cities and towns and online.
Through Netmeds, which had raised about $99 million prior to today’s announcement, consumers get access to more than 70,000 prescription drugs for chronic and recurring ailments as well as enhanced lifestyle drugs and thousands of non-prescription goods for wellness, health and personal care.
Reliance Retail plans to expand its ownership in Vitalic to at least 80% by April 2024 and holds the rights to own 100% in the future.
“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,” said Isha Ambani, director of Reliance Retail, in a statement.