Apollo HealthCo. in talks to raise USD 500 Mn via a minority stake sale
Apollo Hospitals is reportedly in talks with a clump of private equity investors including SoftBank and General Atlantica to sell a minority stake in its pharma business, Apollo HealthCo. The 100% subsidiary of Apollo Hospitals is expected to raise USD 500 million through the stake sale.
Notably, Amazon’s recent partnership deal with Apollo Hospitals set the ball rolling for its latest equity stake sale, which is estimated to raise the vertical’s valuation to USD 3 billion. The multinational hospital chain also stated that it will continue to look into more capital raising plans for the future.
Speaking about the Amazon partnership, the company stated that it has decided to list its pharmacy products on Amazon’s website. With this listing, customers of Amazon India will have access to Apollo’s pharmacy products across the country, facilitated by Amazon’s extensive delivery services.
This collaboration between the retail giant and the hospital chain is designed to sharpen the omnichannel focus of the pharma business. It will also give Amazon the boost needed to contend with Tata group and Reliance which have entered the market with acquisitions.
If reports are to be believed, the non-exclusive nature of the partnership is a setback as other companies are now eyeing a stake in Apollo HealthCo. However, it does give an advantage to Apollo’s online pharmacy business.
In recent years, the online pharmacy space has been fiercely competitive with major players like Reliance and Tata Digital entering the fray and acquiring strong businesses like Netmeds and 1mg respectively. Moreover, Amazon’s most recent partnership with Apollo, a large offline player is expected to add more fuel to the fire.
Last year, Apollo Hospitals Enterprises had announced the merger of its offline and online pharmacies as well as its telemedicine businesses via a slump sale into 100% subsidiary Apollo HealthCo.
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