Flipkart said it has inked formal agreements to buy a majority interest in SastaSundar, but it did not say how much it paid. SastaSundar, which is eight years old, was last valued at $125 million in a funding deal in 2019. According to research company Tracxn, the Kolkata-based startup, which works with around 490 pharmacies, received $48.2 million in different phases before the present purchase.
Flipkart Health+ will be the name of India’s largest e-commerce site, which is valued at more than $37 billion. Flipkart’s anticipated entry into the healthcare industry comes at a time when the industry is undergoing both consolidation and aggressive investment.
Last year, Amazon India, Flipkart’s main competitor in India, began selling medications in its marketplace. Last year, Reliance Retail, India’s largest retail chain, bought the parent company of online pharmacy Netmeds. Tata Digital, a conglomerate competitor, purchased online pharmacy 1mg in June. PharmEasy, the market-leading healthcare firm, filed for an initial public offering (IPO) for $843 million earlier this month.
E-pharmacies now account for less than 5% of the pharma business, but analysts at Bernstein noted in a study earlier this year that their “potential for expansion is quite high with increased awareness, digital penetration, and increasing comfort with online transaction in other categories.” “There has been substantial consolidation with players quitting and M&A activity, even with modest levels of penetration,” they continued.
The startup’s majority interest acquisition by Flipkart, according to Ravi Kant Sharma, founder, and CEO of SastaSundar would expedite the younger firm’s objective to “deliver cheap healthcare to all Indians in a seamless manner.” “In India, the consumer internet ecosystem is quickly expanding as people grasp the benefits and ease that digital adoption brings to their life. According to Ravi Iyer, senior vice president and head of Corporate Development at Flipkart, “With rising awareness and attention on health heightened by the epidemic, there is a tremendous opportunity and demand for inexpensive healthcare and auxiliary products.”
“Through this investment in SastaSundar.com, we are pleased to join this area as a trusted partner for lakhs of customers through legitimate items, a technology-powered platform, and a large network.” The Flipkart Group’s and SatsaSundar.com’s synergies, together with our dedication to prioritizing our customers’ requirements, will enable us develop and change online healthcare in India.”
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