InvestorQ : What is the synergy you see in Reliance buying into Netmeds?
vidhya Laxmi made post

What is the synergy you see in Reliance buying into Netmeds?

sarah Leo answered.
2 years ago

With the RIL group being in the news for its digital business for some time now, the focus appears to have shifted suddenly to pharma retailing. Reliance Retail Ventures has acquired majority equity stake in Netmeds for nearly Rs.620 crores in cash.

Reliance Retail has taken 60% holding in the share capital of Vitalic Health, owner of Netmeds platform, and 100% equity ownership of its subsidiaries. RIL will obviously use the digital platform to enhance the retail reach of medicines, with a view to ensuring affordable health care.

Vitalic runs Netmeds, an online platform to connect customers to pharmacists and enable door step delivery of medicines, nutritional health and even wellness products. It will be a logical extension to the Reliance retail vision leveraging on its digital platform.

Interestingly, this comes just days after Amazon launched “Amazon Pharmacy” in Bengaluru. Amazon will also leverage artificial intelligence-based virtual assistant Alexa to request prescription refills. Now Reliance Retail will be squarely competing with Amazon.

Clearly, the online big daddy is looking at e-pharmacies as a major market and retail opportunity. According to EY, the market potential for e-pharmacies is $18 billion by 2023 a virtual doubling of the market in just four years.