Mukesh Ambani bets Big on E-commerce buys Netmeds to compete with Amazon
· Plans to acquire startups like Urban Ladder, Zivame & Milkbasket.
· D-mart also Plans to expand their business with electronic store.
Asia’s richest man and Owner of India’s most valuable company Mukesh Ambani has acquired 60 percent stacks in Online Pharmacy Netmeds for Rs.620 crore. Mukesh Ambani’s Vision is clear to be present in every digital business. With this Acquisition RIL is now compete with amazon. Recently Amazon has announced that they have launched online pharmacy in Bengaluru.
Amazon plans to deliver medicine and expand the portfolio of their E-commerce business. Last year Amazon has acquired online pharmacy PillPack in U.S with US$750 million. Now amazon is focusing on India and already started operations in Bengaluru for online Pharmacy business. Now Reliance Retail Ventures will be competing with amazon in online pharmacy space.
Isha Ambani, Director, Reliance Retail Ventures is very happy with Netmeds’s acquisition and believes that with Netmeds they will be providing medicines at lower cost to the Indian consumers and also expand the their E- Commerce product portfolio. Going Digital is good habit specially in this lockdown situation. Netmeds has investments from savral other companies which includes Singapore-based Daun Penh Cambodia Group, Sistema Asia Fund, Tanncam Investment and healthcare-focused investment firm OrbiMed.
With Merger and Acquisition in online pharmacy business we can say that now this vertical will also have a high completion and it will be difficult to make entry for Startups. With startups getting success such as Pharm easy, Medlife,1mg etc,We can say this industry will also has good potential and with investment from big companies it will be better for consumer.After the launch of Jio mart,The acquisition of Netmeds will make official entry of Reliance Retail to E-Commerce space and become one of the few companies that made good impact during COVID-19 period.
Netmeds founded by Pradeep Dadha and currently deliver medicines along with personal care and baby care items with option to booking of doctors online through their mobile App. Pradeep was looking for buyer from last 15months as they were running out of investment to run company and in July they got in touch with management from Reliance Retail and got the deal done. With Entry of Reliance the sector will see the long term build up.
Top management team of Mukesh Ambani is also looking to acquire other startup which includes online furniture startup Urban Ladder, online milk delivery startup Milk basket which is getting funded by other investors as well and also in talks with online lingerie retailer brand Zivame under jio’s E-commerce platform. This buying intentions clearly indicates that Jio will be the largest and strongest E-commerce platform in coming days.
On the other hand Radhakrishnan Damani’s D-Mart is also looking forward to launch their Electronic store for consumer durable and electronic appliances in both online and offline form.
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