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.
Tata Digital Ltd, the company that houses the Tata group’s digital assets, on Thursday said it is set to acquire a majority stake in online pharmacy 1mg Technologies Pvt. Ltd.
The investment is in line with Tata group’s vision of creating a digital ecosystem that addresses consumer needs across categories in a unified manner, it said in a statement.
This is Tata Digital’s second major investment in an Indian startup this week. On Tuesday, the company announced a $75 million investment in fitness startup CureFit and named its co-founder Mukesh Bansal as president of Tata Digital.
The current deal is a primary and secondary share sale worth $250-$270 million, with other existing investors also infusing capital along with Tata Digital, according to a person who spoke on condition of anonymity. Of the total deal, $160 million will be in the form of primary infusion into the company.
[expander_maker id=”1″ more=”आगे पढ़े ” less=”Read less”]
Post the fund infusion, Tata Digital is expected to own almost 60% in 1mg and will increase its shareholding in the e-pharmacy startup in the coming months, the person said.
1mg’s early investors Sequoia Capital India and Omidyar Network India will exit the firm in the next two months, said a second individual with direct knowledge of the discussions. A secondary round will take place as part of this deal in the coming months, this person said.
With the fundraising, 1mg’s valuation is expected to cross $450 million, from close to $270 million before the deal, both the people cited above said.
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 Pratik Pal, chief executive of Tata Digital.
Tata Digital added that e-pharmacy, e-diagnostics and teleconsultations are critical segments and will form a key element of the digital ecosystem that the company is building.
[/expander_maker]
