As Medlife closes, its customers will be effortlessly transferred to Pharmeasy, which will now serve 2 million households per month.
The e-pharmacy unicorn PharmEasy announced on Tuesday that it has purchased Medlife for an unknown sum. PharmEasy will become the leading participant in the domestic online pharmacy business as a result of the acquisition, with the merged business expected to service 2 million users each month.
“We began in 2015 with the goal of making inexpensive health care available to everyone; PharmEasy now covers every single pin code,” says the company. We hope to reach out to even more people in India as a result of this. On Linkedin, Dhaval Shah, co-founder of PharmEasy, stated, “This makes us by far the largest health care delivery platform in the country, reaching more than 2 million families a month.”
According to one individual familiar with the situation, the purchase values Medlife stockholders’ holding at $250 million.
Medlife as a brand will be phased out as a result of this transaction. “While we admire the Medlife brand, we feel that a single emphasis on consumer demands, delivered through a single platform called ‘Pharmeasy,’ will enable us to better serve them. Customers with a Medlife account can simply log in to the PharmEasy app and use their Medlife account with the same cell phone.
He went on to say that all digitised prescriptions and recorded addresses going back a year will be available. PharmEasy will also enrol Medlife’s retail partners in addition to users.
According to a filing with the Competition Commission of India, the proposed combination involves API Holdings, the parent company of PharmEasy, acquiring 100% equity shares in Medlife in exchange for 19.59% equity share capital.
“As the e-pharmacy industry matures, smaller businesses are combining to form larger players. PharmEasy and Medlife have a combined market share of 60-70 percent. This is good for consumers because better economics are passed on to them, and it’s good for businesses because they’re more profitable,” said Rehan Yar Khan, managing partner of Orios Ventures Partners, a PharmEasy investment.
People are migrating to online purchases of general drugs and medical gadgets such as thermometers, oximeters, and health supplements as a result of the pandemic, which has affected the fortunes of e-pharma businesses. According to reports, sales at prominent online pharmacies increased by up to 60% during the second wave.
