The company said the investment represents ~60% holding in the equity share capital of Vitalic and direct 100% equity ownership of its subsidiaries, viz: Tresara Health Private Limited (THPL), Netmeds Marketplace Limited (NML) and Dadha Pharma Distribution Pvt Limited (DPDPL).
No governmental or regulatory approvals were required for the said investment. The investment does not fall within related party transactions and none of RIL’s promoter/promoter group/group companies has any interest in the transaction, RIL said in the filing on Tuesday.
RRVL will further acquire an equity stake in Vitalic, through a mix of secondary purchase and primary investment, for at least 80% stake by April 2024, with an option to increase to 100% ownership.
Speaking on this strategic investment, Isha Ambani, Director, RRVL, said, “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. We are impressed by Netmeds’ journey to build a nationwide digital franchise in such a short time and are confident of accelerating it with our investment and partnership.”
Pradeep Dadha, Founder & CEO, Netmeds, said, “It is indeed a proud moment for “Netmeds” to join Reliance family and work together to make quality healthcare affordable and accessible to every Indian. With the combined strength of the group’s digital, retail and tech platforms, we will strive to create more value for everyone in the ecosystem, while providing a superior Omni Channel experience to consumers.”
Vitalic was incorporated in India on September 7, 2015. Vitalic and its subsidiaries are in the business of pharma distribution and sales, and business support services. Its subsidiary also runs an online pharmacy platform – Netmeds – to connect customers to pharmacists and enable doorstep delivery of medicines, nutritional health and wellness products.
NML, incorporated on August 24, 2010, had a turnover of Rs7.77cr, Rs13.94cr and Rs10.05cr, and Net Profit (Loss) of Rs (164.15) cr, Rs(174.41) cr and Rs(59.56) crore in FY20, FY19 and FY18, respectively.
The aforesaid investment will further enhance affordable availability of essential quality health care products & services by the group, while furthering group’s digital commerce initiatives, with user access across all daily essential needs, RIL said in the filing.