Amazon in talks with Apollo Hospitals for partnership in pharmacy business: Sources
Investors are keen if Amazon partners with Apollo Hospitals to enhance its primarily offline model with its online reach.
November 26, 2021 / 09:00 AM IST
Online retail giant Amazon is in talks with Apollo Hospitals for a partnership in their pharmacy business, sources told Moneycontrol. Amazon & Apollo HealthCo are eyeing a partnership for enhancing the omnichannel focus of pharmacy business. This will give Amazon the firepower to fight big boys like Reliance & Tata who have entered the fray with acquisitions.
Sources suggest that Apollo Hospitals is in talks with several private equity funds with tech focus for a minority stake sale in the pharmacy business. Investors are keen if Amazon partners with Apollo to enhance its primarily offline model with its online reach and make it fully omnichannel, sources shared. Moneycontrol learns that it is not yet clear that Amazon will pick a stake in Apollo HealthCo upfront but may explore the option.
Apollo Hospitals is looking to sell up to 20% stake in their pharmacy subsidiary and wants to raise around $500 million. Sources suggest that the valuation of the business pre-money is ascribed a little lower than $3 billion.
In response to an email query by Moneycontrol, an Apollo Hospitals spokesperson said, “We would like to state that as a policy, we do not comment on media speculation and rumours. As part of our overall corporate strategy, we continuously evaluate various options and opportunities for maximizing value for our shareholders.”
Amazon's response said, “We do not comment on speculations.”
Online pharmacy is becoming a fiercely competitive space as Reliance recently bought NetMeds and Tata Digital acquired 1mg. Amazon's partnership with an offline large player will heat up the space even more.
Apollo Hospitals Enterprises had announced the merger of its online and offline pharmacies and telemedicine businesses through slump sale into 100 per cent subsidiary Apollo HealthCo earlier in 2021.Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.