Flipkart to acquire majority stake in Sastasundar to boost healthcare portfolio

The company said it has signed definitive agreements to acquire a majority stake in Sastasundar Marketplace Limited that owns and operates online pharmacy and digital healthcare platform SastaSundar.com. 

Walmart-backed e-commerce giant Flipkart has announced its entry into the healthcare sector with the launch of its healthcare vertical Flipkart Health+.

Kolkata-based startup Sastasundar was valued at $125 million in a funding round in 2019 and has tie-ups with close to 500 pharmacies across the country.

Rival Amazon India is already selling medicines on its online marketplace, while Reliance Retail, the largest retail chain in India, acquired the parent firm of online pharmacy Netmeds last year. Emerging rival Tata Digital bought online pharmacy 1mg in June.

PharmEasy, the market leading healthcare startup, filed for an $843 million initial public offer earlier this month.

E-pharmacies today account for less than 5 per cent of the pharma market and there is ample scope for growth as digital penetration and increasing health awareness along with the comfort with online transaction expands the consumer base.

Ravi Kant Sharma, founder and chief executive of SastaSundar said the acquisition of a majority stake by Flipkart will accelerate the pace of the start-up’s mission to “provide affordable healthcare to all Indians in a convenient manner.”

“The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives. With growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings,” said Ravi Iyer, senior vice president and head of corporate development at Flipkart.

“We are excited to enter this space through this investment in SastaSundar.com, a company that has established itself as a trusted partner for lakhs of consumers through genuine products, a technology-powered platform and a wide network. The synergies between the Flipkart Group and SatsaSundar.com, combined with our commitment to prioritise our customer’s needs, will help us grow and transform online healthcare in India.”