Egypt-based pharmaceutical firm Ibnsina Pharma, has reportedly acquired a 75 percent stake in its compatriot 3elagi Tech, a digital pharmacy marketplace. According to the company, the remaining 25 percent will continue to be held by the founders and 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 2017, 3elagi connects consumers with pharmacies, labs and healthcare providers in their immediate vicinity, helping them order medicine online. The company claims that it has served over 600K users and works with over 40K pharmacies all across Egypt.
Speaking of the acquisition deal, Mohsen Mahgoub, Ibnsina Pharma’s Chairman, in a press statement said,
“This acquisition came in line with the growing importance of the 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.”
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.”
The company is planning to deploy the fresh proceeds to expand its user base, as well as the number of registered pharmacies in its network.