Pharmeasy stated that Medlife will discontinue operations and merged with the company from May 25, 2021.

Atom E-pharma Wednesday, May 26, 2021 - 13:06

Mumbai-based Pharmeasy on Tuesday announced the acquisition of rival Medlife, thereby creating India’s largest online pharmacy. “It’s official. Medlife is now a part of the PharmEasy family! We started with the sole purpose of making affordable healthcare accessible to all in 2015, PharmEasy has now covered every single pin code across the country. With this, we aim to reach even more people pan India and cater to their healthcare needs,” Dhaval Shah, Co-founder of Pharmeasy wrote on LinkedIn.

“While we love the Medlife brand - we believe that a singular focus on our consumer needs through a single platform ‘Pharmeasy’ will help us solve for consumer needs much better," he said. He added that this would make them the largest healthcare delivery platform across the country.

In a blog post, Pharmeasy stated that Medlife will discontinue operations and merged with the company from May 25, 2021. Medlife customers need to login to the PharmEasy app to start using their Medlife account via the same mobile number. All their digitised prescriptions and saved addresses dating back to a year will be available on the PharmEasy app.

“PharmEasy has been working towards making affordable healthcare accessible to all since 2015. This acquisition significantly strengthens our position in the healthcare industry, and further helps us in providing quality healthcare to more number of Indian households,” the company added in the blog post.

Pharmeasy’s proposal to the Competition Commission of India (CCI) to acquire Medlife last August was first reported by the Economic Times. The deal resulted in Medlife’s shareholders acquiring a 19.59% stake in Pharmeasy’s parent entity API Holdings, estimated at $240 million. Last month, a $350 million investment led by Prosus Ventures and US-based private equity firm TPG Growth in API Holdings was announced. API Holdings was valued at $1.5 billion following the deal, which made it India’s first online pharmacy to become a unicorn.

The fast-growing online pharmacy sector is witnessing a lot of competition with Reliance, Tata Group and Amazon all jumping into the fray. Reliance acquired a majority stake in Chennai-based Netmeds for Rs 640 crore last August, while the Tata Group signed an agreement to acquire 65% stake in New Delhi-based 1mg earlier this month. Amazon forayed into the online pharmacy space in August last year and is offering its prescription drug deliveries to customers in Bengaluru via its largest retailer Cloudtail.