August 18, 2020
Reliance will take a 60 per cent stake in Vitalic Health and 100 per cent ownership of Netmeds
The US$83.8 million acquisition will help in connecting customers and pharmacists digitally
This partnership will enhance the pharma industry’s contribution to India’s e-commerce journey
India’s e-commerce revenue is expected to grow at 51 per cent and hit US$120 billion by 2020
Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL), has announced its acquisition of a 60 per cent equity stake in Vitalic Health and 100 per cent direct equity ownership of Netmeds, its collection of subsidiaries. According to an official company release on August 18, the US$83.8 million acquisition will help in bridging the online gap between customers and pharmacists in India, enabling the convenient and contactless delivery of medicines and nutritional health and wellness products to those in need.
RRVL Director, Isha Ambani, spoke on the role of this investment in supporting digital access for every citizen in India. With the help of an online pharmacy platform, consumers will enjoy easy access to high quality, affordable healthcare products, and services. Reliance Retail and Netmeds will also contribute to expanding India’s e-commerce proposition to cover the majority of daily essential products. Netmeds Founder & CEO, Pradeep Dadha, expressed his confidence in the partnership creating value for all stakeholders and enhancing the pharmaceutical industry’s role in India’s e-commerce journey.
Building on favourable policies and regulations, amidst other socio-economic factors, Indian e-commerce has recorded rapid growth over the last few years. Steady growth in the Indian economy along with the promises of a 1.3-billion-strong consumer market has attracted the largest global e-commerce players to set up shop and expand business in India, creating access to high-margin opportunities within a vast and previously-untapped market.
Driven by the Government of India’s initiatives to digitise essential services, both governmental and otherwise, India’s total internet user base is expected to increase to 829 million by 2021. India’s internet economy is expected to reach US$250 billion by 2020, backed primarily by e-commerce, with social distancing regulations for the COVID-19 pandemic serving as a driving force in the growth. India’s e-commerce revenue is expected to jump from US$39 billion (2017) to US$120 billion (2020), growing at a rate of 51 per cent, making it the fastest developing e-commerce market in the world.