BENGALURU: Tata Sons have forayed into the $1.2 billion e-health space with two recent acquisitions through its subsidiaries Tata Digital and Tata Medical and Diagnostics.
Tata Digital on Thursday announced the acquisition of a majority stake in e-pharma start-up 1MG, whereas Tata Medical and Diagnostics has bought a video conferencing solution from a Silicon Valley-based start-up Access Bell for an undisclosed amount.
The Tatas may also pick up a stake in hyperlocal delivery platform Dunzo to strengthen their e-commerce game, since the start-up is looking to raise additional funding.
In the e-health space, Tata Digital is now pitted against Reliance which acquired NetMeds for Rs 620 crore.
Last month, unicorn PharmEasy acquired a smaller player, Medlife, to become the country’s largest e-health chain and it is looking to expand its markets after a $320 million investment from Prosus Ventures and TPG Growth.
In a statement, Tata Digital said that 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”.
It added that the e-pharmacy, e-diagnostics, and teleconsultation segments are critical to this ecosystem and that they have been amongst the fastest growing segments in the space since they enabled access to healthcare during the pandemic.
According to an analysis from market research firm Redseer, the e-health sector space in India grew at a CAGR of 100 per cent to touch $1.2 billion Gross Merchandise value (GMV) in FY20.
Despite supply chain constraints faced during the pandemic, especially for e-diagnostics and medicine delivery verticals, the sector grew by 70 per cent last year.
“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,” said Prashant Tandon, co-founder and CEO, 1MG.
Incorporated in 2015, 1MG provides online delivery of medicines, health and wellness products, diagnostics services, and teleconsultation to customers.
The start-up operates three diagnostics labs and has a supply chain covering over 20,000 pincodes across India. Through its subsidiaries, it also engaged in business-to-business distribution of healthcare products.