New Delhi: Despite regulatory objections being raised over the practice of online pharmacy, the faith of the investment community in the future of this model only seems to be getting stronger.
According to a recent media reports, Netmeds a Chennai based online pharmacy Netmeds is in the process to raise up to $100 million (Over Rs 698 crore).
The company had raised funds in various rounds, the latest being $35 million Series C round by the Singapore based Daun Penh Cambodia Group, besides existing investors Sistema Asia Fund and Tanncam Investment.
While the spokesperson denied commenting on the matter when contacted by Medical Dialogues team, Livemint reports that the company has appointed Credit Suisse as the investment banker for the deal while looking for strategic and financial investors. Credit Suisse Group AG is a Swiss multinational investment bank and financial services company founded and based in Switzerland.
It is further learnt that the fundraising process is still at a fairly preliminary stage.
In 2015, the Pradeep Dadha Group of Companies established Netmeds.com. MAPE Advisory Group, a financial services firm, and Orbimed, a private equity firm, had invested in the privately owned pharmacy.
In October 2017, it raised $14 million from Tanncam and Sistema Asia Fund. Medical Dialogues had earlier reported that Netmeds had raised $14 million (over Rs 90 crore) in the latest round of funding from Cambodian investment holding company Tanncam and venture firm Sistema Asia Fund.
Prior to this, in October 2015, it had raised a $50-million round led by healthcare-focused investment firm OrbiMed, with participation from boutique investment bank MAPE Advisory Group and Dadha’s family investment fund.
A couple of months ago, the e-pharma portal had announced that it will be acquiring the health-tech startup KiViHealth in a cash and stock deal. It would be investing close to $10 million to integrate and grow KiViHealth.
Controversy surrounding E- Pharmacies
As the model of online selling of medicines attracts more appeal, it still faces opposition from local pharmacists who point to the lack of regulatory checks in the model. Acting on the same, high court had forwarded the matter to the Centre’s counsel who informed that rules were yet to be framed to regulate such entities and the government was in the process of framing rules, however, outcomes in this regard is still pending.