Indian e-commerce large Flipkart to amass an internet pharmacy market to foray into healthcare area – TechCrunch

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Walmart-backed Flipkart is buying on-line pharmacy startup SastaSundar to enter the healthcare section in India because the e-commerce battle intensifies on the earth’s second-largest web market.

Flipkart mentioned it has signed definitive agreements to amass a majority stake in SastaSundar, however didn’t disclose the dimensions 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 greater than 490 pharmacies, raised $48.2 million throughout a number of monetary rounds previous to the present deal, in keeping with analysis agency Tracxn.

India’s prime e-commerce platform, which is valued at over $37 billion, mentioned its healthcare vertical might be referred to 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 12 months. Reliance Retail, the biggest retail chain in India, acquired the guardian agency of on-line pharmacy Netmeds final 12 months. Its conglomerate rival, Tata Digital purchased on-line pharmacy 1mg in June

PharmEasy, the market-leading healthcare startup, filed for an $843 million preliminary public providing earlier this month.

E-pharmacies in the present day account for lower than 5% of the pharma market and its “scope for progress could be very excessive with rising consciousness, digital penetration and rising consolation with on-line transaction in different classes,” analysts at Bernstein mentioned in a report earlier this 12 months. “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 customers acknowledge the alternatives and comfort that digital adoption is enabling of their lives. With rising consciousness and concentrate on well being heightened by the pandemic, there’s a giant alternative and demand for inexpensive healthcare and ancillary choices,” mentioned Ravi Iyer, senior vp and head of Company Growth at Flipkart, in an announcement.

“We’re excited to enter this area by this funding in SastaSundar.com, an organization that has established itself as a trusted accomplice for lakhs of customers by 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.”

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