BENGALURU: Tata-owned online pharmacy start-up 1mg has joined the unicorn club with a fresh funding round of over $40 million. The round was led by Tata Digital. With this round, the start-up is now valued at $1.25 billion.
Start-ups that are valued at $1 billion or above are called unicorns. Tata Digital has infused over $30 million in the latest round. Apart from 1mg, Pristyn Care, PharmEasy, Innovaccer, Axtria and Curefit are other healthtech start-ups that turned into unicorns.
Also, 1mg has become the country’s 107th unicorn after logistics start-up Shiprocket that entered the unicorn club last month. In June 2021, Tata Digital acquired a majority stake in 1mg. Though the deal amount was not disclosed, it is said that Tata Digital acquired nearly 62% stake in the online pharmacy start-up.
While investing in 1mg, Tata Digital had said that e-pharmacy, e-diagnostics and teleconsultation are critical segments and have been among the fastest-growing segments in this space. Founded in 2015 by Prashant Tandon, Vikas Chauhan and Gaurav Aggarwal, 1mg delivers medicines and other health products to over 1,800 cities across the country. It also provides diagnostic services. It has delivered over 31 million orders so far.
The pandemic has accelerated innovation in the health-tech sector. According to a report by advisory firm RBSA Advisors, the health-tech market in India is expected to grow at a 39% CAGR over FY2020-FY2023.