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Tata-owned online pharmacy startup, 1mg, has reportedly joined the unicorn club after raising around $40 million in an internal funding round led by Tata Digital. Hereby, 1mg has become country’s 107th unicorn.
Tata 1mg Twitter handle
The round also saw participation from existing investors MPOF Mauritius, HBM Healthcare Investments, KWE Beteiligungen and many others. The recent fundraise is said to allow the company to build up its play against the competition coming from Reliance’s Netmed and PharmEasy.
As per reports, Tata Digital has infused over $30 million in the latest round. In June 2021, Tata digital has acquired a majority stake in 1mg. Recent reports said that, Tata Digital has acquired nearly 62 per cent stake in the online pharmacy startup.
Commenting on this investment, one of the close sources in a news report was quoted as saying, “The new financing has happened at a significant premium through the discussions were for a higher valuation before the markets turned choppy. This is also for the time being and the company will look to raise a bigger round later this year or next year.”
Founded in 2015 and acquired by Tata Digital in 2021, 1mg is a digital consumer healthcare platform that makes healthcare accessible, understandable and affordable. It allows users to find information about medicines prescribed by doctors and also buy it. The company empowers Indian customers and caregivers to select the appropriate healthcare service at the best possible price, as per company website.
According to market studies, the India healthtech market is currently valued at $2 billion and is expected to grow at a CAGR of 39 per cent to reach $5 billion by 2023.
