Cam­bo­dia’s Tan­ncam, Sis­tema Asia Fund In­fuse $14 m into Netmeds

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Mum­bai: Health­care ecom­merce com­pany Netmeds has se­cured $14 mil­lion (about ₹ 100 crore) in a series-E fund­ing round led by Cam­bo­dian in­vest­ment firm Tan­ncam to fuel its ex­pan­sion plans. The other in­vestor was In­di­a­cen­tric ven­ture fund Sis­tema Asia Fund.

“We be­lieve that this round of fund­ing re­flects a re­newed con­fi­dence in the in­dus­try and its fu­ture, brought about by both GST and the gov­ern­ment’s re­lease of the draft of rules gov­ern­ing on­line phar­ma­cies,” Netmeds CEO Pradeep Dadha said. “We also be­lieve that the in­vest­ments, both made by in­ter­na­tional funds, demon­strate a healthy ap­petite for global in­vest­ment in the In­dian con­sumer prod­ucts mar­ket, and health­care in par­tic­u­lar, ow­ing to its mas­sive po­ten­tial.”

Peo­ple aware of the de­vel­op­ment said the cap­i­tal in­fu­sion was in re­turn for15% stake in the com­pany, which is be­ing val­ued at $100 mil­lion. In­vest­ment Bank Mape was the ad­vi­sor to the trans­ac­tion, they said. ET could not in­de­pen­dently ver­ify the stake sale.

Ac­cord­ing to Dadha, the com­pany that serves about15,000 pin codes in In­dia, mostly tier-II and III cities, has been grow­ing at a 26% CAGR month-on-month. “We ex­pect to main­tain the same rate of growth,” Dadha said. The com­pany will build upon its con­sumer base and ex­pand its reach to more lo­ca­tions in the coun­try. “This is re­flected in our grow­ing reach, es­pe­cially in tierII and III cities, ru­ral towns and vil­lages which lack op­tions and choices that metro dwellers en­joy and our plat­form brings medicines and health­care within their reach dig­i­tally,” he said.

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