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Less than a month after Zomato-backed Shiprocket turned unicorn, online pharmacy platform Tata 1mg has joined India's unicorn club as its 107th member.
Tata 1mg, formerly known as 1mg, was founded in April 2015 by Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan, after it broke off from Healthkart. It provides services like e-pharmacy, e-consultation, diagnostics as well as health content. 1mg claims to deliver 31 million orders a month across 20,000 pin codes in the country.
In June 2021, Tata Digital acquired a majority stake in the company for a consideration of $220-240 million, which valued the firm at around $450 million. After the acquisition, the name was changed to Tata 1mg as Tata Digital currently holds around 62% of the company.
The company has raised nearly $41 million from this round which has brought its valuation up to $1.25 billion. This round of funding was led by Tata Digital which is reported to have infused $32 million into the company. Other investors which participated include KWE Beteiligungen, HBM Healthcare Investments, MPOF Mauritius, and MAF Mauritius.
Tata 1mg is the 107th Indian Unicorn, 21st Unicorn in 2022, 5th healthcare tech Unicorn in India & the third company under Tata Digital to turn Unicorn (after BigBasket & CultFit).
This funding round comes during a funding crunch and poor market conditions which forced Pharmeasy to defer its IPO. The funding will assist the company tackle growing competition from players like Reliance-backed NetMeds, Apollo & Pharmeasy. Moreover, the company recently doubled its revenues to Rs 627 crores but also reported a 68% surge in net losses, which came in at Rs 526 crores.
The company is also in talks to raise a bigger round of funding later this year or next year. This will assist the company in its plans to expand its digital footprint across India & turn profitable in the next 2 years.
Article by Aman Agarwal.
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