Cab-hailing platform Ola (ANI Technologies Pvt Ltd) is reportedly in talks to invest in or acquire Bengaluru-based medicine delivery startup Myra Medicines.
Bengaluru, 09 Jan, 2019. RedNewswire/-
The deal is driven by common investor Matrix Partners and is expected to close by the end of this month, said one of the people aware of the company’s plans, requesting anonymity.
If this deal goes through it will mark Ola’s entry into the online medicine delivery field. Ola wants to get into all kinds of deliveries. Since there is huge potential in medicine delivery segment, it wants to have an early mover advantage.
The company has also been trying to build its food delivery business, having acquired Foodpanda about a year ago.
“This is part of Ola’s strategy where they want to get into all kinds of deliveries,” said the second person aware of the company’s plans. “It will also help bail out Myra Medicines, which has been struggling in the highly competitive medicine delivery space.”
“Ola wanting to deliver medicines is a natural progression for them after their acquisition of Foodpanda,” said Satish Meena, a senior forecast analyst at Forrester Research. “This is their way to utilise the existing food-delivery fleet which can be used to deliver medicines as well.
Myra Medicines was founded in 2013 by Faizan Aziz and Anirudh Coontoor. It claims to deliver medicine within an hour. It has backing from investors such as Matrix, Times Internet and Dream Incubation. Ola is said to use its existing food-delivery fleet for medicines delivery.
The e-pharmacy market is expected to reach $55 billion by 2020, according to the India Brand Equity Foundation. The online medicine delivery market is currently facing regulatory uncertainty.
However,Delhi High Court had declared a nation-wide ban on e-pharmacies and online sale of medicines in december. On Tuesday, the Court again emphasised that ban will continue till the next date of hearing on February 6.