E-pharmacy platform Tata 1MG crossed the coveted billion-dollar valuation mark after raising about $40 million (Rs 319.4 crore) in a round led by Tata Digital. Other investors participating in the round include MPOF Mauritius Ltd, HBM Healthcare, and KWE Beteiligung.
Tata Digital invested close to $32 million (Rs 254.6 crore), while KWE Beteiligung put in close to $2.35 million (Rs 18.7 crore), according to filings with the Registrar of Companies.
In May 2019, a leading consulting firm predicted the Indian e-pharma market to grow >7 times between 2019 and 2023 expected to reach US$ 2.7 billion (Rs.199 billion) by 2023, from US$ 360 million (Rs. 26.5 billion), at a staggering CAGR of 65.5%.
The company has issued 30,992 shares at a price of Rs 1,03,047 per share.
The company did not disclose the valuation of the deal but the infusion is set to have valued the health tech startup at $1.25 billion, according to several media reports, thus achieving unicorn status.
The fundraising will help Tata 1mg fend off rivals, including Reliance-backed Netmeds and Tiger Global-backed Pharmeasy.
The company did not comment on the development.
Tata 1mg allows users to buy medicines and health products online and also facilitates teleconsultation and lab testing.
Tata Digital, a subsidiary of conglomerate Tata Sons, acquired 1mg in mid-2021 to strengthen its presence in the consumer and health tech spaces. It acquired the fitness platform, Curefit, in June last year. At the time, 1mg operated three diagnostics labs, and had a supply chain covering over 20,000 pin codes across India.
“Trust is the most important currency in healthcare, and there is no other brand in India that is more synonymous with trust than the Tata Group,” Gaurav Agarwal, Co-founder and Chief Technology Officer (CTO) of 1mg, said earlier on the acquisition.
It enables consumers to learn more about their medicines and also find more cost-effective substitutes. 1mg’s doctor platform aims to revolutionize how a consumer finds the right healthcare professional for his needs.
It’s diagnostics service brings transparency and price-effectiveness to lab tests. 1mg is an initiative taken in the spirit of public service with a vision to empower Indian consumers and caregivers to select the most appropriate healthcare service at the best possible price.