India: Tata Digital to acquire majority stake in online pharmacy 1MG

Tata Digital Ltd, a subsidiary of Tata Sons Private Limited, on Thursday said that it is all set to acquire a majority stake in digital health company, 1MG Technologies Private Ltd.

The investment in 1MG is in line with Tata Group’s vision of creating a digital ecosystem that addresses the consumer needs across categories in a unified manner, said Tata Digital in a statement.

The Tata Sons’ subsidiary, earlier this week, announced its investment of $75 million in fitness startup CureFit and onboarding of Mukesh Bansal as President.

Tata Digital also added that e-pharmacy, e-diagnostics, and teleconsultation are critical segments, and will form a key element of the digital ecosystem it is building.

“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 officer (CEO) of Tata Digital.

Incorporated in 2015, 1MG provides online delivery of medicines, health and wellness products, diagnostics services, and teleconsultation to customers.

“We are delighted to join hands with one of India’s most iconic and respected conglomerates. This marks a significant milestone in 1MG’s journey to make high-quality healthcare products and services accessible to customers across India,” said Prashant Tandon, co-founder and CEO, 1MG.

At present, 1MG operates three diagnostics labs and has a supply chain covering over 20,000 pincodes across India. Through its subsidiaries, the company also engaged in business-to-business (B2B) distribution of medicines and other healthcare products.

Earlier in May, Tata Digital announced the purchase of a majority stake in online grocer BigBasket, and had committed an investment of ₹1,591 crore ($219 million) in the online grocer, show regulatory filings.

Tata Digital has been steadily building its super-app, under which it looks to bring all the Tata Group consumer businesses and offer digital services including payments, financial products, e-commerce, and e-grocery services.

Last year, even Reliance Industries Limited (RIL) entered the e-pharmacy space and bought a controlling 60% stake in Vitalic Health Pvt. Ltd., parent of e-pharmacy Netmeds for approximately ₹620 crore in September.

This article was first published on livemint.com

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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.