Tata Digital acquires 1mg to enter health and wellness space
After months of speculation, Tata Digital finally announced on Thursday that it will be acquiring a major stake in 1mg. It remains tight-lipped about the financial aspects of the acquisition, but this is a part of the company's overarching strategy to create a formidable digital ecosystem. Tata Group had earlier acquired grocery delivery platform BigBasket while also investing in fitness start-up CureFit.
The 1mg acquisition allows Tata Group to make its presence felt in the burgeoning health and wellness category. The latest acquisition is a unique digital consumer healthcare platform that intelligently addresses B2C medicine retail while also offering price-effective diagnostics and lab tests. The acquisition comes at a strategic juncture when consumers are increasingly gravitating to online platforms even for medical services.
"The investment in 1mg strengthens Tata's ability to provide superior customer experience and high-quality healthcare products and services in the e-pharmacy and e-diagnostics space through a technology-led platform," said Tata Digital's chief executive officer (CEO) Pratik Pal.
In addition to B2C and B2B medicine distribution through a comprehensive network spanning 20,000 pin codes across the country, 1mg also offers tele-consultation—a sector that has seen unprecedented growth during the pandemic. The company also boasts of sophisticated diagnostic labs backed by wide coverage, which provides customers all over the nation critical health services, with the convenience of online bookings.
"We are delighted to join hands with one of India's most iconic and respected conglomerates. This marks a significant milestone in 1mg's journey to make high-quality healthcare products and services accessible to customers across India," said Prashant Tandon, CEO and co-founder of 1mg.
The 1mg acquisition comes hot on the heels of Tata Digital's another conquest—fitness start-up CureFit Healthcare. The company made an announcement on Monday revealing the $75 million investment. The deal allows the Tata Group to achieve its stated goal of creating a one-stop digital solution for all consumer needs. These two investments certainly consolidate its position in the health and wellness space.
