Flipkart, the Walmart backed e-commerce platform is acquiring SastaSundar, an online pharmacy startup, to enter the healthcare segment in India.

Flipkart said it has signed definitive agreements to acquire a majority stake in SastaSundar, but it did not disclose the size of the deal. In a financing round in 2019, eight-year-old SastaSundar was last valued at $125 million. According to research firm Tracxn, the Kolkata-headquartered startup, raised $48.2 million across several financial rounds before the current deal.

Flipkart said its healthcare vertical will be called Flipkart Health+. E-pharmacies “scope for growth is very high with increasing awareness, digital penetration and increasing comfort with online transaction in other categories,” analysts at Bernstein said in a report earlier this year. “Even with low levels of penetration, there have been significant levels of consolidation with players exiting and M&A activity,” they added.

Ravi Kant Sharma, founder and chief executive of SastaSundar said the startup’s majority stake acquisition to Flipkart will accelerate the younger firm’s mission to “provide affordable healthcare to all Indians in a convenient manner.”

“The consumer internet ecosystem in India is growing rapidly as consumers recognize the opportunities and convenience that digital adoption is enabling in their lives. With growing awareness and focus on health heightened by the pandemic, there is a large opportunity and demand for affordable healthcare and ancillary offerings,” said Ravi Iyer, Senior Vice President and Head of Corporate Development at Flipkart.

“We are excited to enter this space through this investment in SastaSundar.com, a company that has established itself as a trusted partner for lakhs of customers through genuine products, a technology-powered platform and a wide network. The synergies between the Flipkart Group and SastaSundar.com, combined with our commitment to prioritize our customer’s needs, will help us grow and transform online healthcare in India.”