ReutersBengaluru: Tata Digital, a wholly owned subsidiary of Tata Sons Pvt. Ltd., is acquiring a majority stake in online pharmacy 1mg—its second significant startup acquisition after
BigBasket.
Earlier this week, Tata Group said it will invest $75 million in the Bengaluru-based fitness startup Curefit. As part of the Tata-Curefit deal, the company’s co-founder, Mukesh Bansal, is joining Tata Digital as president.
These acquisitions are seen as stepping stones towards Tata’s super app play.
Deal Details
According to people close to the development, 1mg has received a total of $220-240 million, including primary and secondary investments.
According to sources:
The deal pegs the company’s valuation at $450 million, said a person briefed on the deal.
Tata Digital and 1mg declined to share details of the acquisition.
“They (1mg) will now grow under the Tata brand. Prashant Tandon (founder of 1mg) will continue to lead the company and work closely with Tata Digital CEO Pratik Pal,” a person aware of the matter said.
E-pharmacy Play
The Tata-1mg deal comes when Industries has entered the online pharmacy space by acquiring Netmeds while PharmEasy merged with smaller rival Medlife.
“The investment in 1mg strengthens Tata’s ability to provide superior customer experience and high-quality healthcare products and services in the e-pharmacy and e-diagnostics space through a technology-led platform,” said Tata Digital CEO Pratik Pal in a statement.
Tata Digital said 1mg has three state-of-the-art diagnostics labs, a supply chain covering over 20,000 pin codes across the country.The company, through its subsidiaries, is also engaged in the business of B2B distribution of medicines and other healthcare products.
“We are delighted to join hands with one of India’s most iconic and respected groups. This marks a significant milestone in 1mg’s journey to make high quality healthcare products accessible to customers across India,” said Prashant Tandon, co-founder and chief executive officer of 1mg.
Earlier this week, Tata Group said it will invest $75 million in the Bengaluru-based fitness startup Curefit. As part of the Tata-Curefit deal, the company’s co-founder, Mukesh Bansal, is joining Tata Digital as president.
These acquisitions are seen as stepping stones towards Tata’s super app play.
Deal Details
According to people close to the development, 1mg has received a total of $220-240 million, including primary and secondary investments.
According to sources:
- Tata Digital is getting 51-60% stake for its investment in the e-pharmacy.
- 1mg’s existing investors Redwood Global-Korea Omega and World Bank’s International Finance Corporation (IFC) have also infused primary capital.
- Venture capital fund Sequoia Capital and Omidyar Network are making a full exit from the firm while other early investors are going for partial exits.
The deal pegs the company’s valuation at $450 million, said a person briefed on the deal.
Tata Digital and 1mg declined to share details of the acquisition.
“They (1mg) will now grow under the Tata brand. Prashant Tandon (founder of 1mg) will continue to lead the company and work closely with Tata Digital CEO Pratik Pal,” a person aware of the matter said.
E-pharmacy Play
The Tata-1mg deal comes when Industries has entered the online pharmacy space by acquiring Netmeds while PharmEasy merged with smaller rival Medlife.
“The investment in 1mg strengthens Tata’s ability to provide superior customer experience and high-quality healthcare products and services in the e-pharmacy and e-diagnostics space through a technology-led platform,” said Tata Digital CEO Pratik Pal in a statement.
Tata Digital said 1mg has three state-of-the-art diagnostics labs, a supply chain covering over 20,000 pin codes across the country.The company, through its subsidiaries, is also engaged in the business of B2B distribution of medicines and other healthcare products.
“We are delighted to join hands with one of India’s most iconic and respected groups. This marks a significant milestone in 1mg’s journey to make high quality healthcare products accessible to customers across India,” said Prashant Tandon, co-founder and chief executive officer of 1mg.