Tata Digital acquires majority stake in online pharmacy startup 1MG
The Tata Group continues to make strong inroads into digital businesses and 1MG is its latest strategic investment after Bigbasket and Cure.fit.
The Tata Group continues to expand its foray into new-age digital businesses as Tata Digital, the wholly-owned subsidiary of Tata Sons, on Thursday announced it has acquired a majority stake in online pharmacy & healthcare startup 1MG Technologies for an undisclosed value.
In a statement, Tata Digital said the acquisition of the majority stake in 1MG is in line with Tata Group’s vision of creating a digital ecosystem, which addresses the consumer needs across categories in a unified manner.
Tata Digital now has got a foothold in three new-age digital businesses – vegetables and grocery delivery, lifestyle fitness, and now an online pharmacy. It has already announced strategic investments in Bigbasket and Cure.fit.
Gurugram-headquartered 1MG was established in 2015 and provides a wide range of online products and services like medicines, health & wellness products, diagnostics services, and teleconsultation to customers.
It operates three diagnostics labs, has a supply chain covering over 20,000 pin codes across the country, and through its subsidiaries is also engaged in the business of B2B distribution of medicines & other healthcare products.
Speaking about the investment into 1MG, Pratik Pal, CEO of Tata Digital, said,
“The investment in 1MG strengthens Tata’s ability to provide superior customer experience and high quality healthcare products and services in e-pharmacy and e-diagnostics space through a technology led platform."
According to the statement, the overall market is estimated to be around $1 billion and expected to grow at over 50 percent compounded annual growth rate (CAGR) driven by increased health awareness among consumers and greater convenience.
“This category will form a key element of the Tata Digital ecosystem offering,” the statement noted.
Prashant Tandon, Co-founder & CEO, 1MG, said,
“We are delighted to join hands with one of India’s most iconic & respected conglomerates. This marks a significant milestone in 1MG’s journey to make high-quality healthcare products and services accessible to customers across India.”
Edited by Megha Reddy