Following the acquisition, Homeobuy will be rebranded 1mgAyush and deal in homeopathic and ayurvedic medicines
Bengaluru: Online health product vendor Healthkart’s generic drug search business 1mg has acquired online homeopathic drug store Homeobuy for an undisclosed amount.
Following the acquisition, Homeobuy will be rebranded 1mgAyush and deal in homeopathic and ayurvedic medicines. The big push towards the segment comes at a time when the ₹ 3,000-crore homeopathic drug sector is poised to almost double to become a ₹ 5,500 crore entity by 2017, according to industry estimates.
While 1mg at present fulfills orders in the National Capital Region centred on Delhi and Bhubaneswar in Orissa, the homeopathy store will operate in New Delhi. 1mg also offers services such as drug search and cost comparison.
Prashant Tandon, co-founder of Healthkart, who now heads 1mg, said the company believed that alternative forms of medicine are “equally important and complementary" to mainstream forms.
“The business will continue to work on a marketplace network model and partner with quality vendors in this sector." Tandon said.
The acquisition comes barely two months after HealthKart spun off its drug search business HealthkartPlus and re-branded it 1mg. The company also raised $6 million for the new business from its existing investors such as Sequoia Capital, Intel capital and Omidayar Network. Deep Kalra, founder of travel portal MakeMyTrip, also participated in that round.
While Tandon took charge of 1mg, Sameer Maheshwari, another co-founder, heads Healthkart. Founded in 2011, HealthKart has so far raised $22 million. The parent will continue to focus on the fitness and nutrition business.
Homeobuy was founded by Vivek Singh, a former Ranbaxy Laboratories Ltd executive, in July 2014 with a personal investment; later the company raised an undisclosed amount from angel investor Amit Sodhi. The company deals in both Indian and imported homeopathic medicines. After the acquisition, Singh will join the 1mg team.
“I wanted to promote and raise awareness about AYUSH (ayurveda, yoga and naturopathy, unani, siddha and homoeopathy) medicines and 1mg has the potential to grow my idea to India’s largest alternative medicine business," said Singh.