Online pharmacy NetMeds has raised $35 million from Southeast Asian investment group Daun Penh Cambodia Group (DPCG). Existing investors Tanncam Investment and Sistema Asia Fund also participated in the round, reported The Hindu. NetMeds said it will use the funds “to both increase awareness through marketing efforts as well as to enhance the customer experience, which means more stock, more FC’s and expedited deliveries.”
DPCG is now an equity stakeholder in the company along with Tanncam, Sistema, MAPE Advisory Group, in addition to founder & CEO Pradeep Dadha and his family investment fund.
- Netmeds began operations in June 2015 and offers a selection of both prescription drugs and non-prescription products, Ayurvedic products, personal care, wellness and household products, and customer medical devices. The services claims to cover 850 locations and offers over 35,000 products.
- The start-up raised $14 million in October 2017 from Tanncam, which is a Cambodian investment holding company, along with participation from Sistema Asia Fund.
- The group’s first investor was OrbiMed which pumped $50 million into the startup in 2015.
The investment by DPCG comes right after the Union government has released draft rules on regulation of sale of drugs online. The draft mandates registration of all online pharmacies, without which the entity can not distribute or sell, stock, exhibit or offer for sale of drugs. “Any person who intends to conduct business of e-pharmacy shall apply for the grant of registration to the Central Licensing Authority in Form 18AA through the online portal of the Central Government,” says the draft policy, as reported by ETtech.
Gurgaon-based online pharmacy 1mg has raised $83 million in funding since it began operations in 2015. In addition to a similar range of products as NetMEds, 1mg also offers laboratory testing at home as well as via tie-ups with diagnostic labs, and claims to have 10 million users. Pharmeasy is a Mumbai-based online pharmacy, which raised around $30 million in a Series C round led by Bessemer Venture Partners.