Reliance, which is owned by Asia’s richest man Mukesh Ambani, has been fighting the US tech giant and Walmart-backed Flipkart for a share in the country’s lucrative e-commerce market.

The Indian firm announced the investment late on Tuesday, with Ambani’s daughter Isha, director of Reliance’s retail subsidiary RRVL, saying the move would expand its “digital commerce proposition to include most daily essential needs of consumers”.

As coronavirus cases in India climb beyond 2.7 million — the third-highest behind the US and Brazil — healthcare start-ups are seeing a huge demand for services as a result of the pandemic.

Reliance said the investment represented about a 60% share in Vitalic Health Pvt Ltd and 100% direct ownership of its subsidiaries, collectively known as Netmeds.

Netmeds has served 5.7 million customers across India, allowing them to order prescription and over-the-counter medicines as well as health supplements via its website and app.

“We are impressed by Netmeds’ journey to build a nationwide digital franchise in such a short time and are confident of accelerating it with our investment and partnership,” Isha Ambani added.

Last week Amazon, owned by Jeff Bezos, the world’s richest man, launched its own online pharmacy in India, initially only in Bangalore, expanding services it already offers in the US and several European countries.

India’s digital health market is forecast to explode from around US$4.5 billion in the current financial year to US$25 billion by 2025, according to consulting agency RedSeer.