3elagi is a startup whose application enables pharmacies to link up with customers who want to buy cosmetics, medicine and other pharmaceutical products. It also allows users to search, compare and order those products online. The startup has so far amassed over 600,000 users.
A local pharmaceutical company, Ibnsina Pharma, has acquired 75% of 3elagi for a reported $1.6 million. The remaining 25% stake will stay with the founders who will be joining the Pharma company and continue working with 3elagi. Cash obtained from the acquisition will be used to expand operations.
Ibnsina Pharma, a company that started in 2001, has grown to become Egypt’s second largest pharmaceutical distributor in terms of market share. It has over 42,000 customers who come in the form of hospitals, wholesalers and pharmacies. It’s collection of products comes from over 350 companies from Egypt and around the world. The Pharma has been looking for new digital ways to do distribution, this led to the company launching an online ordering platform. To further these efforts, Ibnsina Pharma decided to acquire 3elagi.
“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,” said Mohsen Mahgoub, Ibnsina Pharma’s chairman.
“This strategic move supports the state efforts to apply a track and 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. 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.”