" "

Healthcare Startup 1MG is Looking to Raise $100 Million in Funding; Gaja Capital May Lead the Round

author-image
Anvesh Renigunta
New Update
Healthcare Startup 1MG is Looking to Raise $100 Million in Funding; Gaja Capital May Lead the Round

Healthcare Startup 1MG is Looking to Raise $100 Million in Funding; Gaja Capital May Lead the Round

  • Online pharmacy and healthcare platform 1MG is in talks with Indian and global private equity funds for a new fund-raise of around $100 million.
  • Private equity firm Gaja Capital May Lead the Round while Tata Capital, Europe’s Partners Group, and another global private equity major are also looking to participate in the round.
  • 1MG is bracing up to fight rivals - Reliance Industries, Amazon, and merged PharmEasy-Medlife.

Advertisment

Gurgaon based online pharmacy and healthcare platform 1MG is in talks with Indian and global private equity funds for a new fund-raise of around $100 million.

1MG is bracing up to fight rivals - Reliance Industries, Amazon, and merged PharmEasy-Medlife.

Private equity firm Gaja Capital is in an advanced stage of talks to lead the round at 1MG while Tata Capital, Europe’s Partners Group, and another global private equity major are also looking to participate in the round, three people briefed on the matter told The Times of India.

Also read: OTT Platforms Netflix, Amazon Prime Video, And 13 Other Adopts Self-Regulation Code: IAMAI

1MG's existing investors, which include Sequoia Capital and World Bank’s International Finance Corporation (IFC), are also expected to participate.

The discussions are underway on the final contours of the deal, which may include the total round being completed in tranches, sources aware of the matter said.

For Gaja, if the deal with the 1MG closes, it will be its first investment from its new fourth fund of around $400 million.

"It is looking to raise north of $100 million and the talks have accelerated following the Reliance-Netmeds deal as it would require capital as a standalone player. Around $70 million of new capital has been finalized but 1MG is negotiating for a bigger cheque," a person aware of the matter told TOI.

Also read: CureFit: Health And Fitness Startup Changing The Industry With Innovation

When contacted, 1MG co-founder and CEO Prashant Tandon, spokesperson for Gaja Capital and Tata Capital declined to comment on the matter. Email sent to Partners Group did not elicit any response.

1MG's rivals like Netmeds, now majority-owned by Reliance, make most of their revenue from medicine delivery, while they are also expanding to online doctor consultations and lab tests.

A report by Ficci-Redseer white paper said, since the start of the Covid-19 pandemic in March, 6 million new households tried online medicine taking the total to 9 million households. While the latest Redseer report said e-pharmacies clocked $1.3 billion in gross sales for the 12-month period ending March 2020.

Online medicine ordering has been catching on in India. Convenience, discounts, and accessibility have been prime drivers for the growth of startups such as Medlife, 1MG, PharmEasy, Sastasundar, and NetMeds. 

Launched in 2013 as Healthkartplus, 1MG initially focussed on the alternative medicine space with AYUSH products. Over the years, it rebranded itself as 1MG which is an online pharmacy and healthcare platform that offers medicines, lab tests, and doctor consultations.

1MG also provides information on medicines. It facilitates lab tests at home. At present, the platform has about 2,000 tests and 120 verified labs listed and users can consult a doctor across 20 specialties.

Follow IndianStartupNews On Twitter Instagram for the latest updates regarding the startup ecosystem.

Subscribe