NetMeds Raising INR 250 Cr Convertible Debt From Parent Company Tresara

NetMeds, an online medicine selling company is in talks to raise approximately INR 250 Cr convertible debt from its parent company Tresara Health Pvt. Ltd. According to RoC filings with the Ministry of Corporate Affairs (MCA), the funds would be used to maintain the smooth functioning of operations and expand the business.

The online medical store, between December 2018 and July 2019, had reportedly raised equity funding worth INR 86 Cr from Teresa Health. NetMeds also raised an investment of approx 250 crores from Daun Penh Cambodia Group in September last year. 

In 2018, the online pharmacy also underwent a structural change due to the change of ownership. At that time, the ownership of the NetMeds was transferred to Tresara Health Private Limited from Vitalic Health Private Limited.

Apart from selling prescription drugs, NetMeds also provides personal care products, medical devices, surgical equipment and infant accessories. The four-year-old company has also acquired three other health startups namely KiviHealth, JustDoc and Pluss.

In a move to improve its delivery speed pan India, NetMeds is reportedly planning to increase the number of its fulfilment centres. Spanning over three lakh square feet, the company, which already has possession of 14 fulfilment centres, aims to increase the number of such centres by 26 by 2020.

While NetMeds reported a loss of INR 59.56 Cr during FY18, the organisation also witnessed a rise in its revenues. From INR 3.94 Cr in FY17 to INR 10.05 Cr in FY18, the firm saw a 2.5X increase in the revenues. 

Rising Investments In Online Pharmacy 

Apart from NetMeds, other players in the online medicine delivery space too are churning out some significant investments. While in Series D round fundings, 1mg raised close to INR 500 Cr, Medlife also raised INR 400 Cr from its existing investor Prasid Uno Family Trust. 

Recently, Mitsubishi Corporation, a Japanese conglomerate has also intended to invest INR 100 Cr in SastaSundar, a Kolkata based online medicine delivery company.

Why Is Healthtech Sector Booming in India?

In India, the healthcare industry is apparently one of the fastest-growing sectors backed by India’s rising income, health awareness, and access to insurance. The boost also came due to the increase in lifestyle and stress-related diseases. The India Brand Equity Foundation (IBEF) has estimated the Indian healthcare market to be valued at $372Bn by 2022.

According to Inc42’s The State of Startup Ecosystem Report 2018, there are a total of 4,892 startups in the Indian health-tech space. With an overall increase of 45.06% in the total investments last year, healthtech startups are attracting investors like never before. Overall, the health-tech startups in India raised a total of $504 Mn between 2014-2018.