Tata Digital acquires majority stake in 1mg

2 min read
TATA Digital has acquired a majority stake in the E-Pharmacy platform 1Mg. Let’s find out more about it as we go ahead.

Introduction:

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.

Conclusion:

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.

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