Tata Digital to acquire majority stake in healthcare e-marketplace 1MG
10 June 2021
Tata Digital Limited, a 100 per cent subsidiary of Tata Sons Private Limited, will acquire a majority stake in digital health company 1MG Technologies Private Ltd. (1MG), a leading player in the e-healthcare space.
The acquisition is the latest in a series of investments that Tata Group has made as part of a strategy to build a super app for its e-commerce ventures. The move comes weeks after it bought BigBasket and announced an investment in CureFit.
Earlier this week, Tata Digital announced plans to invest up to $75 million in the healthtech startup CureFit, subject to completion of diligence process and other approvals. CureFit founder and CEO Mukesh Bansal will join Tata Digital in an executive role as president, Tata Digital, and will also continue to lead CureFit.
Incorporated in 2015, 1MG enables easy and affordable access to a wide range of products like medicines, health and wellness products, diagnostics services and teleconsultation to customers.
The company operates three state-of-the-art 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 and other healthcare products.
Tata Digital said the investment in 1MG is in line with the Tata group’s vision of creating a digital ecosystem that addresses consumer needs across categories in a unified manner.
“E-pharmacy, e-diagnostics, and teleconsultation are critical segments in this ecosystem and have been among the fastest-growing segments in this space, as this sector enabled access to healthcare through the pandemic. The overall market is around $1bn and expected to grow at ~50 per cent CAGR driven by increased health awareness among consumers and greater convenience. This category will form a key element of the Tata Digital ecosystem offering,” it added.
“The investment in 1MG strengthens Tata’s ability to provide superior customer experience and high-quality healthcare products & services in e-pharmacy and e-diagnostics space through a technology-led platform," Pratik Pal, CEO of Tata Digital, said.
“We are delighted to join hands with one of India’s most iconic and respected conglomerates. This marks a significant milestone in 1MG’s journey to make high-quality healthcare products and services accessible to customers across India,” Prashant Tandon, co-founder and CEO, 1MG, said.
1mg is India's largest digital health platform, commanding the leading share of the time spent in the Digital Healthcare category with over 40 million monthly unique users and 500 million monthly page views. Its portfolio includes e-pharmacy, e-diagnostics, and e-consult services. 1mg claims to be the only company in India operating with a Legit Script & ISO certification for its e-pharmacy lines as well NABL accreditation for its dDiagnostics business.
Tata Digital is a 100 percent subsidiary of Tata Sons Private Limited. Tata Digital set up its operations in August 2019, to build consumer-centric digital businesses for deep consumer engagement and their needs across multiple verticals - retail, travel, financial services.