Tata Sons subsidiary Tata Digital on Thursday said it is acquiring a majority stake in digital health startup 1mg, the latest in a series of investments as the salt-to-steel Indian conglomerate enters the digital consumer space.
The firms did not share financial details of the deal, but earlier local media reports suggested that Tata Digital was planning to invest between $100 million and $110 million for a 65% stake in the six-year-old Indian startup . A Tata Digital spokesperson declined to comment. 1mg did not immediately respond to a request for comment.
According to insight firm Tracxn, 1mg raised $156 million before Thursday’s announcement and was last valued at $242 million. This suggests that Tata Digital is buying 1mg, which includes the Bill & Melinda Gates Foundation and Sequoia Capital India.
1mg is one of the biggest players in the health sector in India, where it competes with Prosus Ventures-backed PharmEasy, which leads the market. 1mg Diagnostics Lab, has a supply chain that covers over 20,000 Indian Zip Codes, and is a leading business-to-business distributor of drugs in the South Asian nation.
Tata Digital said its investment in 1mg is in line with Vishal’s vision of creating a digital ecosystem that meets consumer needs across all categories in an integrated manner. The giant, which earlier this week announced plans to invest in fitness startup CureFit, acquired a majority stake in online grocer BigBasket earlier this year.
“We are delighted to join hands with one of India’s most prestigious and respected groups,” Prashant Tandon, Co-Founder and CEO, 1mg said in a statement. “This is a significant milestone in 1mg’s journey to make high quality healthcare products and services accessible to customers across India.”
This is a developing story. More to follow…