Reliance buys Netmeds (60%) for 620 cr. This is interesting - remember, Reliance is Indian and can have inventory. I really like this - the game is really one of scale. Disclosure: Invested in Reliance
Netmeds is online and a marketplace and has delivery capabilities, apparently 57 lakh customers in 20K pin codes - The valuation seems to be Rs. 2000 a customer which is steep, but will probably 1/100th that at the Reliance ability to scale.
Netmeds valuation - It raised three rounds - $50M, $14M, $35M - a total of $99M. Assuming reliance ONLY paid 620 cr for Netmeds (it got 60% of the parent), the group was valued at 1000 cr.
That's about $150M. Looks like the investors will just about recover their investment.
That's about $150M. Looks like the investors will just about recover their investment.
Note that they acquire FULL ownership of Netmeds. And also 60% of the parent, but an option to buy out 100% in four more years. 
Given the nature of this, I hope the promoters of Netmeds, the Dedhas, made a decent amount of money. I fear though that if the investors had Liq-prefs, there's not that much coming into the founders' pockets.
You know what I like about this? Local M&A is becoming a real thing. Mahindra bought a bunch earlier, like Firstcry, but those were super-distress. Reliance is like bring it on.
Great for founders, one more beyond Inter-VC-deals and Softbank.
Great for founders, one more beyond Inter-VC-deals and Softbank.
