E-pharmacy start-up PharmEasy has acquired its rival Medlife with an undisclosed amount. This deal made PharmEasy an undisputed champion in the domestic online pharmacy sector, with the combined two having the capacity to serve 2 million customers in a month.
PharmEasy will soak up Medlife’s existing customers and set up their new accounts on the PharmEasy portal. Medlife existing users just need to log in to the PharmEasy App to start using their Medlife account via the same mobile number. All digitized prescriptions and saved addresses dating back to a year will be available. Besides users, PharmEasy will also onboard Medlife’s retail partners.
“We started with the sole purpose of making affordable healthcare accessible to all in 2015. PharmEasy has now covered every single pin code across the country. With this, we aim to reach even more people pan-India and cater to their healthcare needs,” Dr. Dhaval Shah, Co-founder of the Mumbai-headquartered startup PharmEasy, said in a LinkedIn post.
He added, the acquisition will make the merged entity the largest healthcare delivery platform across the country by a distance. Moving forward, we aim to offer better services to the people.
The API holdings backed start-up PharmEasy is also planning to escalate funds from a public market listing. As per the sources, PharmEasy is aiming to raise around Rs. 3,000 – Rs. 3,700 Crores ($400-$500 million) from IPO by the end of 2021 or the beginning of 2022.
The pandemic has changed the fate of e-pharma players, with people switching to online purchases of medicines and medical devices such as oximeters, thermometers, and health supplements. Reports say top online pharmacy providers have seen an up to 60% rise in sales during the second wave.
According to reports, the Indian e-health sector is expected to become a $16 billion market by 2025. Such opportunities have also attracted giant businesses. Reliance has acquired 60% stakes in Netmeds, Tata Group has also signed a definitive agreement with 1mg to buy 65% share of the start-up, Amazon has also entered the online medical sector and launched Amazon Pharmacy.