Exclusive: Online Pharmacy Medlife Bags $6.8 Mn In Debt

Bengaluru-based online pharmacy Medlife has raised $6.8 Mn in debt from Ivy Icon Solutions.

According to the Ministry of Corporate Affairs filings accessed by Inc42, Medlife’s parent company Medlife International Private Limited has allotted 50 compulsorily convertible debentures (CCD) at a nominal amount of INR 1 Cr per debenture, leading up to INR 50 Cr. The company has not announced the use of the capital in the regulatory filings.

Earlier this month, the healthtech startup raised $23.6 Mn or INR 173 Cr in a mix of debt and preference shares from SC Credit Fund and Prasid Uno Family Trust. According to filings with the Ministry of Corporate Affairs accessed by Inc42, Medlife allotted 50 NCDs at a nominal amount of INR 10,00,000 per share amounting to a total of INR 5 Cr to SC Credit Fund.

The infusion from Prasid Uno Family Trust came in two tranches. Medlife allotted 1,25,270 Optionally Convertible Redeemable Preference Shares (OCPRS) at a nominal amount of INR 100 per share and a premium of INR 11,754 per share to Prasid Uno Family Trust. This aggregated to 148,49,50,580.

In February, the online pharmacy had allotted 16,871 OCPRS at a nominal amount of INR 100 per share and a premium of 11,754 to Prasid Uno Family Trust, aggregating to INR 19,99,88,824. Prasid Uno Family Trust has infused INR 167 Cr ($22 Mn) in the company.

The development comes as Medlife is planning to get a bigger share of the online medicine delivery segment by planning a merger with rival PharmEasy. The duo has also sought the approval of the Competition Commission of India (CCI) on the merger.

The companies, in the documents submitted to CCI, noted that Medlife will sell 100% shares to PharmEasy’s parent company API Holdings. In return, it will get nearly 19.59% ownership in the combined entity. Though other transactional details of the potential merger have not been revealed, media reports suggest that it could lead up to $200 Mn to $250 Mn and could value combined entity at $1 Bn.

Meanwhile, big enterprises like Reliance and Amazon have entered the domain as well. Earlier this month, Amazon launched its epharmacy venture Amazon Pharmacy. The online pharmacy will be piloted in Bengaluru first and will be expanded to other cities later. Meanwhile, Reliance Retail acquired Netmeds to expand its offerings.

Even  rival Flipkart may also enter this domain soon. According to an Economic Times report citing sources, Flipkart may partner with PharmEasy to smoothen its entry into this segment. The report further noted that the two companies have held multiple rounds of discussions, and the potential for investment is open too. Nothing has been finalised yet.