Tata-owned healthtech major 1mg has turned unicorn (valued over $1 bn) with a fresh fund infusion of $40 million led by Tata Digital.
According to the company’s regulatory filings, the healthtech company has allotted 30,992 equity shares at a price of ₹1,03,047 per share. Other investors participating in this round include KWE Beteiligungen, HBM Healthcare Investments, MPOF Mauritius, and MAF Mauritius among others.
In this round, Tata Digital’s investment was around $32 million. 1mg was acquired by Tata in June 2021. While the company did not disclose the acquisition value, multiple publications reported the deal value to be around $250- $270 million. The fresh infusion is now estimated to have valued Tata 1mg at $1.25 billion.
1mg’s CEO, Prashant Tandon, did not respond to BusinessLine queries till the time of publication.
Funding crunch
In a recent media interaction, Tandon has said that the company plans to expand its digital footprint across the country. The healthtech company is also aiming to turn profitable in the next two years. This funding round comes at a time when healthtech companies have recorded the second highest number of layoffs this year, amid the funding crunch. Also, 1mg’s direct competitor Pharmeasy has been reported to have delayed its IPO and is in talks to raise a down round at almost 25 per cent lower valuation.
Founded in 2015, 1mg offers healthcare services like doorstep delivery of medicines, health and wellness products, teleconsultation and diagnostics. 1mg reported an operating revenue of ₹627 crore in FY22, which is twice of ₹309 crore revenue recorded in FY21. More than 50 per cent of its operating revenue in FY 22 came from the sale of medicines, personal care products and healthcare devices.