Online pharmacy startup 1mg, operated by Tata 1mg Technologies Pvt. Ltd recently raised $40 million in a funding round led by its majority shareholder, Tata Digital Limited, at a unicorn valuation.
KWE Beteiligungen AG, HBM Healthcare Investments, MPOF Mauritius, MAF Mauritius, Robal Jain and Vardane have also invested in Tata Group Company.
Tata Digital Limited has invested about $32 million, while KWE Beteiligungen and HBM Healthcare have invested about $2.35 million and $2 million, respectively, in the online pharmacy, according to corporate ministry documents.
After the investment round, 1MG is now valued at around $1.25 billion according to company spokespeople.
Let's take a look at the success path the startup took to become the unicorn of today.
About 1mg And How It Started
1mg started as an online drug delivery platform with the goal of making healthcare affordable and accessible to people across the country.
Initially called HealthKartPlus, it was founded by Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan in 2013. The company launched in 2015 after Healthkart spun off generic drug research company HealthkartPlus, renaming it to 1mg.
The platform provides services such as diagnosis, medication, preventive health care, and online questions and answers to its users. It later expanded to include not only epidemiological treatment but also began offering homeopathic and Ayurveda range which eventually increased its user base.
Its Road To Success
The startup launched in 2013 at a time when there weren't many pharmaceutical companies providing online diagnostic services and making it easy to buy medicines.
People had trust issues buying medicine online during that time. But the way 1mg has promoted itself by offering a wide range of brands at affordable prices has stuck with users after all these years.
As well as winning multiple awards for its performance, the pen hit the cover last year when Tata Digital, a 100% subsidiary of Tata Group holding company Tata Sons, acquired a majority stake in 1mg.
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