Online pharmacy marketplace Netmeds has secured an investment of $14 million 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.
Financial services company Cambodian Investment Management acted as Adviser on the transaction for Tanncam.
Following the investment, 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.
The healthtech startup will use the proceeds to build upon consumer base and expand its reach to more locations in the country.
“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, “said Pradeep Dadha, CEO, Netmeds.
Netmeds Marketplace was launched by Dadha in 2010, whose family ran Tamilnadu Dadha Pharmaceuticals, which was acquired by Sun Pharmaceuticals in 1997.
Two years ago, the Chennai-based startup secured Rs 324 crore ($50 million) in funding from a clutch of investors led by healthcare-focused investment firm OrbiMed.
Netmed wants to spread its network to all Tier-II and Tier-III cities, where Dhadha feels the real market lies. He also plans to have his company listed on the stock exchange in the next four years.
In July, Gurugram-based digital health startup 1mg, a competitor to Netmeds, secured $15 million in Series C round led by HBM Healthcare Investment and existing investors-Maverick Capital Ventures, Sequoia India, Omidyar Network and Kae Capital.