Tata 1mg raises $40M led by Tata Digital, turns unicorn

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.

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 healthtech startup at $1.25 billion, according to several media reports, thus achieving unicorn status.

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The fundraise 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 tele-consultation and lab testing.

Tata Digital, a subsidiary of conglomerate Tata Sons, acquired 1mg in mid-2021 to strengthen its presence in the consumer and healthtech spaces. It acquired the fitness platform, Curefit, in June last year. At the time, 1mg operated three diagnostics labs, had a supply chain covering over 20,000 pin codes across India, and also offered B2B distribution of medicines and other healthcare products.

"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.