Walmart-backed Flipkart is buying on-line pharmacy startup SastaSundar to enter the healthcare phase in India as e-commerce battle intensifies on this planet’s second largest web market.
Flipkart mentioned it has signed definitive agreements to accumulate a majority stake in SastaSundar, however didn’t disclose the scale of the deal. Eight-year-old SastaSundar was final valued at $125 million in a financing spherical in 2019. The Kolkata-headquartered startup, which works with over 490 pharmacies, raised $48.2 million throughout a number of monetary rounds previous to the present deal, based on analysis agency Tracxn.
India’s prime e-commerce platform, which is valued is valued at over $37 billion, mentioned its healthcare vertical will probably be known as Flipkart Well being+. Flipkart’s deliberate foray into the healthcare area comes at a time when the market is seeing each consolidation and aggressive investments.
Amazon India, Flipkart’s chief rival in India, started promoting medicines on its market final yr. Reliance Retail, the biggest retail chain in India, acquired the guardian agency of on-line pharmacy Netmeds final yr. Its conglomerate rival, Tata Digital purchased on-line pharmacy 1mg in June
PharmEasy, the market main healthcare startup, filed for an $843 million preliminary public providing earlier this month.
E-pharmacies as we speak accounts for lower than 5% of the pharma market and its “scope for development could be very excessive with growing consciousness, digital penetration and growing consolation with on-line transaction in different classes,” analysts at Bernstein mentioned in a report earlier this yr. “Even with low ranges of penetration, there was important ranges of consolidation with gamers exiting and M&A exercise,” they added.
Ravi Kant Sharma, founder and chief government of SastaSundar mentioned the startup’s majority stake acquisition to Flipkart will speed up the youthful agency’s mission to “present inexpensive healthcare to all Indians in a handy method.”
“The buyer web ecosystem in India is rising quickly as shoppers acknowledge the alternatives and comfort that digital adoption is enabling of their lives. With rising consciousness and give attention to well being heightened by the pandemic, there’s a giant alternative and demand for inexpensive healthcare and ancillary choices,” mentioned Ravi Iyer, Senior Vice President and Head of Company Improvement at Flipkart, in an announcement.
“We’re excited to enter this area by means of this funding in SastaSundar.com, an organization that has established itself as a trusted associate for lakhs of shoppers by means of real merchandise, a technology-powered platform and a large community. The synergies between the Flipkart Group and SatsaSundar.com, mixed with our dedication to prioritize our buyer’s wants, will assist us develop and remodel on-line healthcare in India.”