Online Pharmacy Startup Netmeds Raises US$14Mn From Tanncam, Sistema Asia Fund
Online pharmacy startup, Netmeds, closed its latest round of funding in which it has secured an investment of $14 million from Cambodian investment holding company Tanncam and venture firm 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.”
Online pharmacy startup Netmeds was founded in 2010 by Pradeep Dadha in Chennai.
The startup is a licensed pharmacy marketplace that offers authenticated prescription and over-the-counter (OTC) medicine digitally along with other health products.
Users can 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. Customers can order medicines through NetMeds’ mobile app, which is available on both iOS and Android.
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 Galliano commented “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.