Tata Digital, a wholly owned subsidiary of Tata Sons, said that it will buy a controlling share in digital health start-up 1MG, extending its string of investments in the online commerce ecosystem.
According to the firm, the investment in 1MG is in keeping with the Tata group’s objective of developing a digital ecosystem that answers customer requirements across categories in a cohesive manner.
“The investment 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,” stated Pratik Pal, CEO of Tata Digital.
While the financial terms of the transaction were not published, sources close to the company stated that 1MG had received both main and secondary capital infusions, with some of the early investors quitting. According to media sources, the business got $220 million in main and secondary financing, as well as involvement from some of its current investors.
1MG has secured a total of $150 million from notable investors including IFC, Sequoia India, Omidyar Network, and Redwood Global of South Korea.
Incorporated in 2015, 1MG has a presence in the e-health industry and provides consumers with a wide range of goods such as pharmaceuticals, health and wellness, diagnostics services, and teleconsultation. The company has three diagnostics labs, has a supply chain that spans over 20,000 pin codes across the nation, and is also involved in B2B distribution of medications and other healthcare supplies through its subsidiaries.
Tata Digital will now have a presence in three main online commerce segments: groceries, lifestyle fitness, and pharmacy. The Competition Commission of India (CCI) approved the company’s acquisition of a controlling interest in online grocery business BigBasket last month. It announced a $75 million investment in Cure.fit earlier this week and appointed Mukesh Bansal as president of Tata Digital.
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