United States-based private equity (PE) firm TPG is considering a 7 percent stake in API Holdings, the parent company of Mumbai-based e-pharmacy Pharmeasy for an undisclosed value.
For this, TPG has sought permission from the Competition Commission of India (CCI) and has incorporated a special purpose vehicle (SPV) in Singapore to conduct the proposed investment, The Economic Times has reported.
In its filing with the CCI, API Holding said it will “use this financing to deepen its distribution network across India and build innovative technology-first products to connect the entire ecosystem and give affordable access to healthcare across India”, the report said.
Moneycontrol could not independently verify the report.
The filing also said “there is no known horizontal overlaps between the two parties”; “only limited vertical relationship” between Pharmeasy acquired Medlife and a hospital which TPG has invested in; and “potential vertical overlap” in API’s wholesale drugs and distribution network and TPG’s hospital.
Pharmeasy did not respond to queries, the report said.
The development comes after reports in October said that Pharmeasy was in talks with TPG and Naspers for $100 million funding each at a valuation of $1.2 billion. API was recently granted CCI approval to fully acquire Bengaluru-based e-pharmacy Medlife.
TPG’s move in the space would be one among many by prominent players such as Tata Group, which is in talks for a majority stake in e-pharmacy 1mg and Amazon that is considering a $100-million investment in Apollo Pharmacy.
In August, Reliance Retail invested Rs 620 crore in e-pharmacy Netmeds for a 60 percent stake.
Disclosure: Reliance Industries (RIL) is the parent company of Reliance Retail and is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.
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