RIL-Netmed deal to bring attractive returns for Sistema Asia Fund


NEW DELHI: Sistema Asia Fund (SAF) on Wednesday mentioned Reliance Industries’ Rs 620-crore deal to purchase Netmeds will carry “enticing returns” for the enterprise capital fund inside three years of its funding within the health-tech firm.

Reliance Retail Ventures Ltd has introduced the acquisition of majority fairness stake in Netmeds for a money consideration of round Rs 620 crore, a transfer that may additional intensify the competitors between billionaire Mukesh Ambani’s Reliance Industries and Jeff Bezos-led Amazon.

SAF, a enterprise capital fund sponsored by Russia’s Sistema PJSFC, is focussed on investing in technology-enabled, shopper and business-oriented startups in India and Southeast Asia.

“SAF first invested in Netmeds in 2017, and this exit will collect enticing returns for the enterprise capital fund as the web pharmaceutical startup grew 4 instances its dimension over the previous three years,” SAF mentioned in a press release.

The deal additionally marks Sistema Asia Fund’s second exit and monetisation, after promoting its stake in Qwikcilver in March 2019, it added.

Nonetheless, SAF didn’t disclose particulars of its shareholding in Netmeds. SAF is within the strategy of doing a ultimate shut of its first fund this 12 months at USD 120 million, the assertion mentioned.

Following the exit from Chennai-based Netmeds, Sistema Asia Fund is an investor in eight firms – Licious, Insurgent Meals, Uniphore, Lendingkart Applied sciences, HealthifyMe, Seclore and Kissht.

Sistema Asia Capital Managing Associate Andrey Terebenin mentioned Netmeds’ speedy progress over the previous few years underlines its technique of investing in firms with sturdy scaling potential and stable income streams.

“Reliance’s backing of Netmeds is a robust endorsement of our funding philosophy, which is to optimise our traders’ cash into promising initiatives in India’s fast-growing know-how market. We’re assured that Reliance’s entry will speed up Netmeds’ progress and assist the startup set up itself because the chief within the on-line pharmacy sector,” he added.

Based by Pradeep Dadha in 2010, Netmeds is an e-pharmacy model that serves over 4 million clients nationwide, enabling them to buy drugs on-line, e-book lab assessments and seek the advice of verified docs on-line.

The corporate’s companies have seen a excessive demand in the course of the COVID-19 pandemic.

The Netmeds deal will strengthen Reliance’s place within the e-commerce house, including to the agency’s grocery platform JioMart.

Healthtech startups like 1mg, PharmEasy, Netmeds and Medlife have seen sturdy progress prior to now few months as individuals turned to on-line platforms to order their medicines whereas sustaining social distancing amid the pandemic.

Final week, Amazon India had introduced the launch of Amazon Pharmacy, whereby it would ship prescription-based medicine in partnership with a vendor on the platform. The service is being launched in Bengaluru initially and could also be scaled as much as different cities sooner or later. There are additionally experiences that Flipkart can also enterprise into the section, although the Walmart-owned firm has not introduced any plans but.

The net drugs market is presently small at 3-3.5 per cent of the overall pharma market as present gamers don’t supply categorical supply choices and supply of medication usually takes 24-48 hours. This limits the market largely to refill prescriptions or for persistent medicines for the brand new prescriptions, based on trade watchers.

With massive gamers like Reliance and Amazon now battling within the e-pharma section, the house is certain to see important enlargement within the close to future, they added.


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