Netmeds, India’s leading healthcare e-commerce portal closed its latest round of funding in which it has secured an investment of $14 million. The funding round was led by Tanncam, a Cambodian investment holding company, which was joined by Sistema Asia Fund, the India-centric venture fund, spun off by, Sistema, Russia's largest public investment holding company.
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.”
Pradeep Dadha added, “The investment will be used to continue to build upon our consumer base and expand our reach to more locations in the country. Awareness, accessibility and affordability are the key USPs of Netmeds that have made it a favourite among Indian consumers. This is reflected in our growing reach, especially in tier-2 and 3 cities, rural towns and villages which lack the options and choices that metro dwellers enjoy, and our platform brings medicines and healthcare within their reach digitally.
Tanncam Investment is an investment holding company incorporated under the laws of the Kingdom of Cambodia which invests globally in early-stage venture capital start-ups and strategic investment opportunities. Financial services company Cambodian Investment Management acted as Adviser on the transaction for Tanncam and it’s CEO Anthony Gallianocommented “Cambodian Investment Management was delighted to conduct the due diligence, valuation, and negotiations for this corporate finance transaction on behalf of Tanncam. Netmeds is changing the paradigm in the pharma market in India and we strongly believe in the merits of the investment”.
The other investor in this round, Sistema Asia Fund Private Ltd., is a venture firm specialising in start-ups, early stage, mid-stage, Series-A, Series-B, and Series-C investments. The fund was created by Russian conglomerate Sistema JSFC with the goal of increasing their engagement with the Indian start-up ecosystem and capitalise on emerging opportunities.
Kirill Kozhevnikov, Managing Director, Sistema Asia Fund said, “We work with many start-ups and young entrepreneurs, but Netmeds is unique among them because it is led by such a strong and seasoned leadership. We have been very impressed by the way Netmeds has been altering the scenario of healthcare accessibility in India and are delighted to be able to contribute towards its larger mission in the country.”
Tanncamm and Sistema will join early investors Investment Bank MAPE and OrbiMed Asia, along with Pradeep Dadha and his family as equity stakeholders in Netmeds.