Flipkart Health Pvt Ltd, the latest entity under the Flipkart Group, has approved to obtain a majority stake under online pharmacy and digital health platform SastaSundar Marketplace Ltd, which owns and manages SastaSundar.com, the companies announced in a shared statement.
Ajay Veer Yadav, the Senior Vice President and Flipkart veteran, will be heading Flipkart Health+, as it will be recognised. The information regarding the deal size wasn’t revealed. The new entity will begin by suggesting e-pharmacy assistance and combine modern healthcare verticals, such as e-diagnostics and e-consultation, in the future.
In the last fundraising round in 2019, SastaSundar was estimated at $125 million, a TechCrunch news article said. SastaSundar last raised to ₹100 crores from Mitsubishi Corporation in November 2019. Japan’s Rohto Pharmaceuticals funded a whole of $10 million in SastaSundar in 2017 and 2019.
“The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives. With growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings,” Ravi Iyer, Senior Vice President and Head – Corporate Development, Flipkart said in the statement.
SastaSundar.com currently proposes digital healthcare and pharmacy platform and has a network of 490 pharmacies. “Through this partnership with Flipkart, we see an opportunity to further grow and reach a larger consumer base, using complementary technologies and logistics infrastructure,” B L Mittal, Founder, Chairman of SastaSunsar Healthbuddy said.
SastaSundar Healthbuddy is the subsidiary of SastaSundar Ventures, the registered entity.
Flipkart is beginning this area at a time when the e-pharmacy range has observed significant strengthening. Last year, Reliance Industries Ltd’s retail unit also obtained a majority stake in online pharmacy Netmeds for ₹620 crores to enter the online e-pharmacy space.
In June this year, Tata Digital acquired a majority stake in e-pharmacy and health technology platform 1mg Technologies Pvt Ltd. PharmEasy parent API Holdings and Medlife International Pvt Ltd joined last year in one of the more significant deals in the space. API Holdings registered for a ₹6,250 crore initial public offering (IPO) last week.