What’s the buzz of Flipkart Health +?
Flipkart backed by Walmart and India’s largest e-commerce platform is all set to enter the healthcare segment by acquiring the online pharmacy start-up SastaSundar. Flipkart has signed a definitive agreement to acquire a majority stake of the eight-year-old Kolkata-based start-up SastaSundar Marketplace Limited. Ajay Veer Yadav the Senior Vice President will lead Flipkart Health +.
What is SastaSundar.com all about?
SastaSundar.com has tie-ups with nearly 500 pharmacies and was valued at $125 million in the last 2019 financial rounding. The company has investors from Japan like Mitsubishi Corporation and Rohto Pharmaceuticals.
How will SastaSundar.com work with Flipkart you ask. Well, Flipkart health will accelerate the strengths of the Flipkart group that include pan India reach and technology capacities, with that of SastaSundar deep expertise on consumers’ end-to-end offerings in the health tech ecosystem.
Mr. Ravi Kant Sharma is the Founder & CEO of SastaSundar.com
Market penetration of Flipkart Health+
According to the Bernstein reports, ”The online pharmacy accounts for less than 5% of the pharma market and its scope is increasing due to the rise in awareness, digital penetration, and easy access to online transactions.
Flipkart health + decided to enter the market during the COVID -19 pandemic seeing the aggressive investments and intense competition. They will start by providing e-pharmacy services, Telehealth consultation, and diagnosis.
The direct competitors of Flipkart Health + are NetMeds, 1mg, PharmEasy
Prospects and e-pharmacy market in India
The e-pharmacies started around 2015 in India which spiked during the pandemic. Currently, the country has around 50 e-pharmacies estimated at approximately $0.5B and up to 3% of the total pharmacy sales. Because of behavioral shift and demand for online purchase, the interest of investors has led to $700M investments in 2020. In 2025 the market is estimated to grow at a compound rate of 44%. According to the RedSeer, the Indian healthcare sector is all set to grow at 17% CAGR until FY 2025 to reach $353 Billion.
At present the e-Pharmacy is governed by the policies framed by the Drug and Cosmetics Act 1940; Drugs and Cosmetic Rules, 1945 and Pharmacy Act 1948.
Conclusion:
The e-Pharmacy has immense potential to grow and scale. Backed by the Government’s effort to ensure affordable health coverage, the e-pharmacies are showing to improve the pharma retail and growth of the sector. However, experts said that it is not easy for Flipkart to tap into the e-pharmacy space because of regulatory hurdles and the ongoing battle between online and offline pharmacies.
