Tata Digital acquires majority stake in 1mg2 min read
TATA is looking forward to making a Super App that will act as an umbrella platform for all the e-services offered by TATA. It will give a huge competition to various e-platforms like Reliance digital, Amazon, Flipkart, and others. Earlier this week, TATA Digital has invested $75 million in a start-up named Cure Fit, and the company is also invited Mr. Mukesh Bansal as President who was the co-founder of Cure Fit, which is again a very positive sign.
TATA Digital-1mg Deal:
- “The investment in 1MG strengthens Tata’s ability to provide superior customer experience and high-quality healthcare products & services in e-pharmacy and e-diagnostics space through a technology-led platform,” said Mr. Pratik Pal, CEO of Tata Digital.
- As per Economic Times, Tata will be acquiring around 51%-60% in 1mg.
- The total deal size will be around $220 million $240 million.
- Through this deal, Sequoia Capital and Omidyar Network will exit from their full stake of 10% and 5% respectively. While HBM Healthcare Investments ad Maverick Ventures will make a partial exit. (As per sources of Economic Times).
- The medical space and e-pharmacy have huge margins in their products which will help the company.
- Other companies like Reliance have also acquired Netmeds and Pharmeasy has also shaken hands with its rival Medlife.
- The supply chain of 1Mg is very robust and it has a delivery to around 20,000 pin codes across the country.
- The company is also engaged in services of providing B2B distribution in medicines and other healthcare products.
This acquisition is looking positive for the company’s perspectives and the building of Super App. Soon we can hope for an Initial Public Offering (IPO) for TATA Digital which is a 100% subsidiary of TATA Sons.