1mg, a Gurgaon-based online drug marketplace which recently raised $15 million in a Series C round, is looking to expand its e-pharmacy, e-diagnostics & e-consultation businesses. The firm has raised a total of $37 million till date.
1mg operates a mobile app and a web platform that allow customers to order medicines and access select healthcare professional services. “The company plans to use the recent $15 million for geographic expansion to cover all parts of India as well as growth in cities we are already present in. We will also use the money for development of a data analytics infrastructure and artificial intelligence (AI)/ machine learning (ML) based platform,” Prashant Tandon, the founder of 1mg said in an interaction with DEALSTREETASIA.
1mg, earlier known as HealthKartPlus, raised its Series C round led by global healthcare-focused fund HBM Healthcare Investments AG. Existing investors Maverick Capital Ventures, Sequoia India, Omidyar Network and Kae Capital also participated in the round.
In December 2016, the company had acquired Mumbai-based MediAngels, a specialty consultation platform. 1mg had also secured a funding of $16 million in April 2016 in its Series B round.
The firm had earlier raised $6 million (Rs 32 crore) from Sequoia Capital, Kae Capital, Intel Capital, Omidyar Network and MakeMyTrip founder Deep Kalra in April 2015. After that round in 2015, 1mg was carved out from Healthkart, a marketplace for nutrition products, to focus on online retail of medicines.
Commenting on investors’ interest in the space, Tandon said while the general investor sentiment might have slowed, healthcare continues to elicit high interest since the market is ripe for a disruption.
Currently, 1mg offers its online pharmacy services in more than 605 cities and plans planning to cover nearly all major cities in India by the end of this year. The company covers around 70 cities with its diagnostics services which is expected to reach 80 metro cities.
Talking about its expansion plans, Tandon said, “We look at acquisitions on an opportunistic basis. As long as we can find some complementary skills, capabilities and know-how, we would always be interested in having a conversation to acquire. However, we are not specifically looking at any acquisitions at this point.”
1mg, which competes with the likes of NetMeds, mChemist, Pluss, Medikoe and BigChemist, is unfazed by competition. “Given the scale of the opportunity, to us, it is healthy that there are so many companies developing the market. Pharmacy itself is a $20 billion market, and we have some 4-5 significant companies in this space right now. So competition is not between us, but it is how much we can grow the market as a whole,” he added.
India: 1mg raises $15m in funding round led by HBM Healthcare