On Wednesday the pharma major, Cipla announced that it will acquire a 21.85 per cent stake in GoApptiv on a fully-diluted basis in two phases and for Rs. 9 crores. The pharma major said in the first phase it will invest Rs. 5.80 crores and Rs. 3.20 crores in the second phase and the entire transaction are expected to close by October 31.
In the first phase, a subscription of 15,392 compulsorily convertible shares and buy of 6,927 equity shares is predicted to require place. while in the second phase, a subscription of 12,314 compulsorily convertible shares is expected to take place.
GoApptiv is a Mumbai based startup that is founded by Rajasekhar Parcha and Sreeram Venkitaraman. Cipla It offers pharmaceutical companies a digital solution to engage with channel partners and improve the reach of brands to rural towns. It further gives digital solutions for customer relationship management. It also provides healthcare data analytics and patient support.
GoApptiv collected total revenue of Rs 19.03 crore in the fiscal ended 30 March 2020 against Rs 2.48 crore in 2018-19 and Rs 1.23 crore in 2017-18.
Earlier in February last year, Cipla announced to acquire an 11.71% stake in health-tech startup Wellthy Therapeutics Pvt. Ltd for Rs 10.5 crore. At that time Cipla had said that the deal aims to encourage innovation-led entrepreneurship and harness disruptive ideas in healthcare.
These investments by Cipla are rare as traditional healthcare firms have mostly stayed far away from striking strategic bets in health tech startups within the country whilst healthcare professionals are said to be making investments in their capacity.
However, health tech startups in India are receiving significant funding from risk capital and personal equity investors over the years.
At present, Cipla stocks are running at Rs. 638.40 apiece.