Tata Digital set to acquire majority stake in 1MG

Tata Digital Ltd, a wholly-owned arm of Tata Sons, on Thursday said it will acquire a majority stake in 1MG Technologies Ltd, an online healthcare marketplace.

The company, however, did not disclose the financial details of the transaction.

Just days after the company said it will invest $75 million (around Rs 550 cr) in fitness-focused Curefit Healthcare for an undisclosed stake, Tata Digital said its investment in 1MG is in line with Tata Group’s vision of creating a digital ecosystem which addresses the consumer needs across categories in a unified manner.

Tata Digital said e-pharmacy, e-diagnostics and tele-consultation are critical segments in this ecosystem and have been among the fastest growing segments in this space, as this sector enabled access to healthcare through the pandemic.

The overall market is around USD 1 billion and is expected to grow at around 50 per cent Compound Annual Growth Rate (CAGR) driven by increased health awareness among consumers and greater convenience. This category will form a key element of the Tata Digital ecosystem offering.

“The investment in 1MG strengthens Tata’s ability to provide superior customer experience and high quality healthcare products & services in the e-pharmacy and e-diagnostics space through a technology-led platform,” Tata Digital CEO Pratik Pal said.

1MG Co-founder and CEO Prashant Tandon said, the investment by the Tatas “marks a significant milestone in 1MG’’s journey to make high-quality healthcare products and services accessible to customers across India.”

Started in 2015, 1MG is among the leading players in the eHealth space.

The salt-to-software conglomerate Tata group has been on an acquisition spree in the e-commerce space. Last month it bought a majority stake in online grocery seller BigBasket for an undisclosed sum of money, pitting it against the likes of billionaire Mukesh Ambani’s Reliance and Amazon.