Private Equity Fund Investments
Tata Digital to buy majority stake in digital health co 1MG in $240-M deal
Mumbai-based Tata Digital will buy a majority stake in Gurugram-based digital health company 1MG at a reported valuation of USD 240 million. The move comes weeks after it bought BigBasket and announced an investment in CureFit. In 2015, 1MG (originally known as HealthkartPlus) was spun off as a generic drug search business from Healthkart. Investors in 1MG include Omidyar Network, Sequoia Capital, IFC and Kae Capital. CEO Prashant Tandon is expected to stay on and lead 1MG after the acquisition. 1MG enables access to a wide range of products like medicines, health & wellness products, diagnostics services and teleconsultation to customers. The company operates 3 diagnostics labs, and has a supply chain covering over 20,000 pin codes across India and through its subsidiaries. It is also engaged in the business of B2B distribution of medicines & other healthcare products. For FY20, 1MG reported revenue of INR 369.3 crore and a loss of INR 317 crore.
From the Venture Intelligence PE-VC Deal Database: Between Apr-15 and Jun-19, 1MG has raised over $118-M from Redwood Global Healthcare Fund, Corisol Holding, Gates Foundation, HBM Healthcare Investments, Kae Capital, Omidyar Network, Maverick Capital, Sequoia Capital India, IFC, Khosla Ventures and others. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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