Online pharmacy platform Tata 1mg turns unicorn after raising $40 mn

Online pharmacy platform Tata 1mg turned a unicorn after raising close to $40 million in a funding round led by Tata Digital, media reports said.

The company was yet to comment on the valuations till the time of going to press.

1mg has raised $230.8 million across 16 rounds, including this one.

Others who participated in the round include existing investors MPOF Mauritius, HBM Healthcare Investments, KWE Beteiligungen, among others.

Tata Digital has infused about Rs 254.63 crore (about $32 million) for 24,711 shares of the company, said the filing on Registrar of Companies.

The total shares allotted in this round is 30,992, with each share being priced at a premium of Rs 103,046.

According to the recent Annual Report of Tata Sons, Tata Digital acquired 58.7 per cent stake in 1mg.

By the end of CY2021, it acquired an additional four per cent, taking its total stake to 62.97 per cent.

A few weeks back, Tata Digital has entered into a call option with the founders of 1mg under which Tata’s can acquire the balance stake for Rs 448 crore.

Tata 1mg was founded in 2015 and was acquired by Tata Digital in 2021.

The platform delivers health products to over 1,800 cities.

So far, the platform has delivered over 31 million orders and has 260 million visitors.

In March this year, 1mg invested in diagnostic firm 5C Network.

The recent fundraise will allow the company to ramp up its play against competition coming from Reliance’s Netmed and PharmEasy.

While the pace of unicorn creation has gone down in 2022, India is continuing to add to the list.

According to the Tracxn data, India had 104 unicorns prior to 1mg. Since the start of 2022, India has added 20 unicorns.

Some of the recent names that joined the list include blockchain-based network for interoperability and cross chain transfer 5ire, OneCard, LeadSquared, PhysicsWallah, among others.