Ibnsina Pharma (ISPH) has signed an agreement to acquire a 75% stake in 3elagi healthcare aggregator platform, which owns one of the fastest growing applications linking pharmacies with patients looking to order medicines and cosmetics online.
The step is considered the second of Ibnsina Pharma’s digital transformation plan, following the launch of its online ordering application last July.
The majority of the EGP 25m in capital involved will be directed to increase 3elagi‘s capital to finance future expansions. The remaining 25% stake in the business will stay with the founders, who will remain onboard with the existing management team to further expand the business and strengthen Ibnsina Pharma’s digital footprint.
Ibnsina Pharma Chairperson Mohsen Mahgoub said, “This acquisition came in line of the growing importance of e-commerce during the COVID-19 pandemic and the social distancing measures.”
He also said, “The lockdown that was implemented around most of the world highlighted the need to give patients access to their medications without having to leave their homes.”
“This strategic move supports the state efforts to apply Track & Trace system in order to prevent counterfeit and illegal drugs getting into the system, by following the drugs at every step of the supply chain,” Mahgoub added, “Also, it supports the national agenda “Egypt Vision 2030” which reflects the state’s long-term strategic plan to achieve sustainable development through knowledge-based economic growth and digital transformation.”
Ibnsina Pharma Co-CEO Omar Abdel Gawad said, “This is our first acquisition in the digital healthcare field, and we will continue searching for similar opportunities that will help us to enhance our offerings and add more efficiencies to operations for the benefit of our stakeholders.”
He also said, “It is also in line with our objective to strengthen our competitive edge in the area of digitalisation to create meaningful innovations for the entire pharmaceuticals sector.”
“The application provides the customer a user-friendly experience with easy navigation between different sections,” said 3elagi Managing Director Mostafa Hamouda, “Using the capital increase proceeds, we will be able to execute our ambitious plans to increase both the number of users, which currently stands at 600,000 users annually, and also the number of registered pharmacies which will have the luxury of benefiting from online orders without having to bear the cost of building their own application.”
“As a shareholder, we are excited with the deal which is compatible with Falak Startups’s mission to empower talented and ambitious early-stage tech startup founders,” said Youssef ElSammaa, CEO of Falak Startups, “It will also help them thrive in the region’s rapidly changing entrepreneurship landscape powered by the Ministry of International Cooperation and its venture capital arm, Egypt Ventures.”