Reliance’s stake in e-pharma startup Netmeds confirmed, whereas TikTok buyout remains ambiguous

Ever since COVID-19 attacked the world, the healthcare and the pharmaceutical industry had to double up its production capabilities and also ensure that the produce is available on online channels. E- pharmaceutical companies, therefore were compelled to respond to the rapid challenges posed by the disruption in supply chains. This put the e-pharma business to soar high in India and global markets as it became the inevitable stop for online retail market growth.

Catching the pulse of this market at the best time now, and also being impressed with e-pharma company Netmeds’ journey to build a nationwide digital franchise in a short time, Reliance Industries Limited (RIL) subsidiary Reliance Retail Ventures Limited (RRVL) acquired a majority equity stake in Vitalic Health Pvt. Ltd and its subsidiaries (collectively known as ‘Netmeds’) for a cash consideration of approximately INR 620 crores.

This investment represents ~60% holding in the equity share capital of Vitalic and 100% direct equity ownership of its subsidiaries, viz: Tresara Health Private Limited, Netmeds Market Place Limited and Dadha Pharma Distribution Pvt Limited.

Vitalic and its subsidiaries are in the business of pharma distribution, 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.

Mukesh Ambani’s daughter Isha Ambani, who is the Director of RRVL, believes that this investment is aligned with the group’s commitment to provide digital access for everyone in India. The addition of Netmeds broadens Reliance Retail’s digital commerce proposition to include most daily essential needs of consumers.

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.”

Tik Tok acquisition news yet to come

Reliance as a company is very good with dropping news that has tremendous business values. And news agencies are very well prepared to hear a confirmation on this ambiguous news on Reliance’s acquisition of ByteDance-owned TikTok. Reliance Industries Limited (RIL) is reportedly the latest bidder for the Bytedance-owned TikTok in India and the deal is said to be valued at $5 billion.

Just like how India is a large market for health and pharma supplies the country is also the largest market for short video content applications. And now with the Chinese App ban, TikTok got removed from the Indian digital network that gave domestic video applications a new lease of life. To recall, TikTok India had over 200 million subscribers and the company was valued at $3 billion.

Although Reliance and Bytedance have denied this possible deal, information from industry sources say that talks between the companies were started as early as July. So far, media houses do not have an official statement on this acquisition, but industry experts and market analysts believe that mostly this deal would come through. Reliance, on this acquisition, will reinforce its digital authority in India’s burgeoning social media applications market, as Facebook’s investment stands as a big support to it.

According to the latest Reuters’ news, on US President Donald Trump’s insistence, Oracle has joined some of the investors (even Microsoft) of TikTok’s Chinese owner, ByteDance, in pursuing a bid for the short-video app’s operations in North America, Australia and New Zealand.