Tata 1mg revenue up nearly 22% to Rs 2,392 crore in FY25; cuts losses

Tata 1mg, the digital health platform backed by Tata Digital, reported a nearly 22% year-on-year growth in consolidated revenue to Rs 2,392 crore for the fiscal year ending March 2025 (FY25).

According to Tata Sons’ annual report, the Gurugram-based company reduced its consolidated net loss to Rs 276 crore in FY25, down from Rs 313 crore a year earlier. Its total expenses rose 17% to Rs 2,682 crore.

The topline was split between Tata 1mg Technologies, which contributed Rs 375.5 crore, and Tata 1mg Healthcare Solutions, which added Rs 2,016.5 crore. However, financials filed separately suggest the two entities reported sharply divergent outcomes—1mg Technologies posted a Rs 65 crore profit, while 1mg Healthcare reported a net loss of Rs 342 crore.

Despite these mixed signals, the platform's parent, Tata Digital, remains committed to its long-term bet. Since acquiring a 55% stake in June 2021, Tata Digital has steadily increased its holding in 1mg to about 67% as of FY25. The platform's last reported valuation was $1.25 billion.

The Tata Group’s digital commerce arm reported a standalone revenue of Rs 546.9 crore and a loss of Rs 827.5 crore in FY25.

To deepen its market footprint and accelerate medicine delivery, 1mg has launched a brick-and-mortar retail strategy. Its current cash burn of Rs 180-200 crore annually is largely being channelled into offline store expansion in cities such as Gurugram, Noida, Lucknow, and Jaipur.

These retail outlets are aimed at supporting 30-minute medicine deliveries and are being developed both independently and in partnership with BigBasket, which lends access to additional distribution points where standalone 1mg stores have yet to open.