Online Pharmacy Netmeds has secured an investment of $14 million in its latest round of funding led by Tanncam, a Cambodian investment holding company. The company also saw participation from Sistema Asia Fund, a venture firm specialising in start-ups, early stage, mid-stage, Series-A, Series-B, and Series-C investments.
As the part of the investment, Tanncam and Sistema will join early investors investment bank MAPE and OrbiMed Asia, along with Pradeep Dadha and his family, as stakeholders in the company, Netmeds said in a statement.
Commenting on the announcement, Pradeep Dadha, CEO, Netmeds said, “We believe that this round of funding reflects a renewed confidence in the industry and its future, brought about by both the GST and the government’s release of the draft of rules governing online pharmacies. This new seal of approval and legitimacy has reignited interest from both investors and consumers. We also believe that the investments, both made by international funds, demonstrate a healthy appetite for global investment in the Indian consumer products market and healthcare, in particular, owing to its massive potential.”
Chennai-based Netmeds was founded in 2010 by Pradeep Dadha which offers authenticated prescription and over-the-counter (OTC) medicine digitally along with other health products.
Netmeds allows both iOS and Android users to upload their prescription that is then examined by the company’s pharmacists to assist with proper dosage, duration, and other points of validity before completing the order.
The company which acquired Delhi-based hyperlocal drugs delivery app Pluss, Netmeds currently competes with Sequoia Capital-backed rival 1mg. It has an inventory of 22,500 SKUs of prescription drugs and 3,000 SKUs of OTC products.
In its previous equity round, it raised $50 Mn from global private equity firm OrbiMed, investment banking firm MAPE Advisory Group, and Dadha’s family investment fund.
The current investment will be used to expand company’s geographical reach in the country especially in tier-2 and 3 cities, rural towns and villages which lack the options and choices that metro dwellers enjoy.