Players in the healthtech industry are finding it difficult to adjust in the post-COVID 19 environment after a pandemic-induced high that pervaded the bulk of the last two years. During the same time frame, we saw the demand for telemedicine, at-home diagnostics, and internet pharmacies start to decline. The consequences are predictable when you include in the challenging market circumstances and the financial crunch that have persisted for a significant portion of the year. But as Tata 1mg has demonstrated, when the going gets rough, the tough get going.
The online pharmacy owned by the Tata Group has recently become India’s 107th unicorn, which comes at a time when layoffs are growing more frequent, companies are having trouble staying viable, and late-stage capital is running out.
With a new investment of roughly $40 million, led by Tata Digital, which contributed $32 million, 1mg overcame the $1 billion threshold to join the unicorn club. Additionally, this is Tata Digital’s first significant investment in Tata 1mg in FY23.
KWE Beteiligungen AG, HBM Healthcare Investments, and others also took part in the round. According to regulatory filings, Tata 1mg distributed 30,992 equity shares at a cost of 1,03,047 per share.
This fundraising, according to insiders, occurred at a “substantial premium,” and Tata 1mg plans to seek further money later this year or in 2023.
The new round brings the online pharmacy’s total capital raised to $230.8 million across 16 rounds, giving it a $1.25 billion valuation. The startup’s admission to the unicorn club is noteworthy, and not simply because of this year’s challenging market conditions and declining investor interest.
The seven-year-old Tata 1mg joined Big Basket and CultFit as the third unicorn business owned by Tata Digital. The new round of funding also made it the first Indian startup to join the unicorn club this year since Shiprocket, which joined the club last month. It is also the newest and 21st Indian startup to do so. In addition, it is India’s fifth healthtech unicorn, following PharmEasy, Innovaccer, Curefit, and Pristyn Care.
Its current operations, which include providing healthcare services including doorstep delivery of medications, health and wellness items, teleconsultation, and diagnostics, will benefit from the cash. The firm, which was founded by Prashant Tandon, Gaurav Aggarwal, and Vikas Chauhan, asserts that it delivers 31 million orders per month over 20,000 pin codes nationwide.