Gaja Capital in talks to lead $100m funding in Indian e-pharmacy 1MG: Report

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Private equity firm Gaja Capital is in advanced discussions to lead a $100-million funding round in 1MG Technologies Pvt. Ltd, which operates online pharmacy 1MG, The Times of India reported.

Tata Capital, Europe’s Partners Group, and a global private equity major may also participate in the Gurugram-based startup’s financing round. The final contours of the deal are still being worked upon, the report said quoting sources.

If the deal goes through, it could mark Gaja’s first investment from its $400-million fourth fund.

1MG Technologies was set up in 2015 by way of a demerger from BLPL (Bright Lifecare Private Limited), a division within digital health platform HealthkartPlus. As of February, the startup claims to have serviced over 70 million customers through its pharmacy, diagnostics and consultation verticals last year.

The $100-million financing will give the company the required firepower to stay in the competition at a time when the e-pharmacy business in India is witnessing a lot of deal traction.

Last month, Reliance Industries Ltd through its retail unit had acquired a majority stake in online pharma company Netmeds for around Rs 620 crore.

Online medicine and healthcare products retailer Pharmeasy has proposed a merger deal with its rival Medlife. If the deal goes through, Pharmeasy will acquire a 100% stake in Medlife, while the latter is expected to pick up a 19.59% stake in Pharmeasy.

Meanwhile, Amazon launched its ‘Amazon Pharmacy’ in Bengaluru while e-commerce player Flipkart is also looking to foray in the space.

IMG has raised about $173 million in funding to date. It last raised about $10 million from the Bill & Melinda Gates Foundation in February this year to meet the current and future operational needs of its business.

The startup had closed its $70-million Series D funding round led by European family office Corisol Holdings and the International Finance Corporation (IFC), a part of the World Bank Group, last June. The round also saw the participation of South Korea’s Redwood Global, Korea Omega Healthcare fund, and existing investors Sequoia Capital, Omidyar Network, Maverick Ventures, Kae Capital, and HBM Healthcare.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.