Cipla Raises Stake In Digital Tech Startup GoApptiv To 22.99% For INR 42 Cr

SUMMARY

This marks Cipla’s third investment in GoApptiv which will be made in a combination of equity shares and compulsorily convertible preference shares

In June 2020, Cipla first acquired a 21.85% stake in GoApptiv for INR 9 Cr and after two years it raised the stake to 22.02% for INR 25.90 Cr

Launched in 2015 by Rajasekhar Parcha and Sreeram Venkitaraman, GoApptiv is a digital tech company engaged in the business of offering digital solutions to pharmaceutical companies for increasing patient reach

Global pharmaceutical company Cipla said it will invest an additional INR 42 Cr ($5.04 Mn) in Mumbai-based GoApptiv, a transaction that will increase the former’s total stake in the digital tech company to 22.99%.

“With this move, we aim to utilise GoApptiv’s technology to strengthen our presence across the healthcare continuum, especially to the underserved population by enabling greater access to lifesaving treatments,” Cipla said in a statement.

This marks Cipla’s third investment in GoApptiv which will be made in a combination of equity shares and compulsorily convertible preference shares.

In June 2020, Cipla first acquired a 21.85% stake in GoApptiv for INR 9 Cr and after two years it raised the stake to 22.02% for INR 25.90 Cr.

It offers end-to-end business solutions including distribution, digital solutions, integrated brand sales management, digital marketing, patient support and healthcare data analytics and channel engagement for healthcare companies.

“Our long-standing partnership with GoApptiv has helped us increase penetration in underserved rural areas of India and address critical healthcare gaps where pharmaceutical coverage is limited,” said Umang Vohra, managing director and global chief executive officer at Cipla Limited.

In September, Cipla also launched drone-based deliveries of its critical medicines for hospitals in Himachal Pradesh, in partnership with Skye Air Mobility. The medicines included cardiac, respiratory and other essential chronic therapies.

Back then, the drugmaker said that the use of drones would support on-time delivery of its medicines to chemists and clinics in remote areas while minimising risks including temperature-linked issues affecting cold chain products.

Cipla claims to be the first among large Indian pharma companies to adopt drone-based deliveries to facilitate expedited supply to stockists in remote areas. The company also aims to expand its market coverage to inaccessible and hilly terrains such as Uttarakhand and the NorthEast region.