Walmart-owned Flipkart to acquire a stake in online pharmacy start-up Pharmallana

Walmart-owned Flipkart is reportedly in talks to acquire a stake in Bengaluru-based healthtech start-up Pharmallama, according to a report by Livemint. People familiar with the matter told Mint that Flipkart may even acquihire this start-up besides gaining access to the technologies of this platform. 

Pharmallama, which is run by Mera Dawai Pvt. Ltd., was started in 2020 by Achintya Dayal, Arjun Raghunandan and Deepesh Rajpal. The online pharmacy start-up competes with brands like Netmeds, Tata1mg, Pharmeasy, Apollo, and others in the market. Pharmeasy, which was supposed to go public this year, shelved its plans citing prevailing market conditions as the reason. 

Flipkart forayed into the healthcare segment in 2021 when it acquired a majority stake in SastaSundar Marketplace Ltd. The Kolkata-based company operates online pharmacy and digital healthcare platform, SastaSundar.com. The ecommerce giant also has invested in the healtech platform, BeatO through its venture capital arm, Flipkart Ventures. 

Recently, tech majors including Amazon and Flipkart Health Plus came under the scanner after the Drugs Controller General of India (DCGI) sent them and 20 other online merchants for the illegal sale of drugs online.

"In spite of the same, you are found to be engaged in such activities without a licence," says the warning to the online pharmaceutical vendors who are breaking the rules.

"...You are hereby asked to show cause within 2 days from the date of issue of this notice, why action shall not be taken against you for sale, or stock, or exhibit or offer for sale or distribution of drugs in contravention of the provisions of the Drugs and Cosmetics Act 1940 and rules made thereunder," the notice read.

The notification, dated February 8, by DCGI's VG Somani, cited a Delhi High Court judgement dated December 12, 2018. The notification prohibits the sale of drugs online without a licence.

The DCGI said that if there is no response, it will be assumed that the company won't comment on the topic and necessary action will be taken against them without further notice.

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