Flipkart on Friday said it will acquire a majority stake in Kolkata-based Sastasundar Marketplace that owns and operates online pharmacy and digital health care platform, SastaSundar.com.
While the deal size was not disclosed, Flipkart said it is foraying into the health care sector through the launch of Flipkart Health+.
“As part of this development, the group has signed definitive agreements to acquire a majority share in Sastasundar Marketplace, which owns and operates SastaSundar.com, an online pharmacy and digital health care platform, as it focuses on providing consumers access to affordable and convenient health care,” a statement said.
SastaSundar.com offers a digital health care and pharmacy platform supported by a network of more than 490 pharmacies.
The company is backed by investors from Japan, namely Mitsubishi Corporation and Rohto Pharmaceuticals.
Flipkart Health+ will leverage the combined strengths of the Flipkart Group, which includes its pan-India reach and technology capabilities, with SastaSundar's deep expertise to provide consumers end-to-end offerings in the health-tech ecosystem, it added.
Flipkart Health+ will endeavour to give millions of Indian consumers access to quality and affordable health care, starting with e-pharmacy and will add new health care services such as e-diagnostics and e-consultation over time, the statement said.
Flipkart Health+ will report to Ajay Veer Yadav, senior vice president, it added.
The consumer internet ecosystem in India is growing rapidly as consumers recognise the opportunities and convenience that digital adoption is enabling in their lives, Flipkart Senior Vice President and Head, Corporate Development, Ravi Iyer said.
He added that with growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable health care and ancillary offerings.
“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 health care in India,” Iyer said.
SastaSundar was founded in 2013 by B.L. Mittal and Ravi Kant Sharma.
In a regulatory filing on the BSE, Sastasundar Ventures Ltd said Sastasundar Healthbuddy Ltd (SHBL) has entered into a share subscription and purchase agreement and a shareholders' agreement on Friday with Flipkart Health Pvt Ltd, pursuant to SHBL's divestment of its equity holding in Sastasundar Marketplace, a wholly owned subsidiary of SHBL.
SML is a step-down subsidiary of Sastasundar Ventures Ltd and post the transaction, it will cease to be a step-down subsidiary of the company.
The filing noted that the company will not be receiving any consideration sale/disposal in relation to the proposed transaction under the agreements.
“The total consideration defined in the definitive agreements will be received by subsidiary and step-down subsidiary of the company upon completion of the proposed transaction. The total consideration will not be less than the fair market value determined based on the report by the registered valuer,” it added.
As per the filing, SML's standalone turnover was Rs 2.58 crore for the financial year ended March 31, 2021, while its net worth was Rs 4.17 crore.
“At SastaSundar.com, we are focused on developing innovative ways to provide access to affordable health care easily and conveniently, building a trusted network for authentic medicines, diagnostics and wellness,” SHBL founder and Chairman B.L. Mittal said.
Through this partnership with Flipkart, the company sees an opportunity to further grow and reach a larger consumer base, using complementary technologies and logistics infrastructure, he added.
“This partnership with Flipkart is a strong validation of the capabilities we have built and will accelerate SastaSundar's mission to provide affordable health care to all Indians in a convenient manner,” SHBL founder and CEO Ravi Kant Sharma said.