Ibnsina Pharma is acquiring a 75 percent stake in online pharmacy marketplace 3elagi, announced in a statement today.
With the onset of COVID-19 accelerating digital transformation, Egypt, in particular, has seen a timely boost in the funding activity of several remote telehealth and online booking platforms.
Egypt-based pharmaceutical company Ibnsina Pharma has reportedly acquired a 75% stake in its compatriot 3elagi Tech. Ibnsina Pharma is the second-largest pharmaceutical distributor of Egypt and 3elagi Tech is a digital pharmacy marketplace. According to the company, the remaining 25 percent will continue to be held by the founders. Also, a minority stake will stay with Falak Startups, who backed the company in its early stage.
As per the acquisition deal, around EGP 25 million ($1.6 million) will be directed towards increasing 3elagi tech’s capital to finance its future expansion, according to the company’s EGX disclosure.
Founded in 2018, 3elagi links customers with pharmacies, labs, and healthcare providers in their immediate vicinity, helping them order medicine online. 3elagi enables consumers to search, compare, and order medicines and beauty products from nearby pharmacies. The company asserts that it has served over 600K users and works with over 40K pharmacies all across Egypt.
Speaking of the investment deal, Mohsen Mahgoub, Ibnsina Pharma’s Chairman, in a press statement expressed,
“This acquisition came in line with the growing importance of e-commerce during the Covid-19 pandemic and the social distancing measures. The lockdown that was implemented in most of the world, highlighted the need to give patients access to have their medications without having to leave their homes,”
Mostafa Hamouda, managing director at 3elagi Tech, said,
“We are excited to partner with Ibnsina pharma, the fastest growing pharma distributor in Egypt with its high efficiency and strong distribution capabilities. We are confident that choosing the right partner whose values and strategic vision are aligned with our own will transform the application into a full-fledged-healthcare platform.”
With the ordering app, the company has been helping pharmacies with their procurement – and with 3elagi, it will help them sell online. The company is also preparing to deploy the fresh proceeds to expand its user base, as well as the number of registered pharmacies in its network.
Haitham Ibrahim, Co-founder, and CCO of 3elagi, added,
“3elagi has been striving to give patients access to medication from the comfort of their home, we also helped create hundreds of jobs in logistics and create loyalty for the average neighborhood pharmacies across governorates.”