Tata Digital on Thursday announced that it will acquire a majority stake in 1MG Technologies, an online healthcare marketplace.
Tata Digital on Thursday announced that it will acquire a majority stake in 1MG Technologies, an online healthcare marketplace. This is the third major investment by the Tata Group in recent weeks after the company announced fitness-focused Curefit Healthcare and online grocery BigBasket. Tata Digital has not disclosed the financial details of the transaction. The company said that the move is in line with Tata Group’s vision of creating a super application that consumers need across different segments. Tata Digital is a wholly-owned subsidiary of Tata Sons.
With the acquisition of 1MG, the Tata Group will come in direct competition with Mukesh Ambani’s Reliance Industries which had stepped foot into the online pharmaceutical retailing business by acquiring Netmeds. Tata Digital said that 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 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 in a statement.
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The overall market is around $1 billion and is expected to grow at around 50% Compound Annual Growth Rate (CAGR) driven by increased health awareness among consumers and greater convenience, news agency PTI reported. The co-founder and CEO of 1MG, 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.”
Earlier this week, Tata Group had said it will invest $75 million (around Rs 550 crore) in fitness-focused Curefit Healthcare for an undisclosed stake. Tata’s have also acquired a majority stake in BigBasket, which has put the salt-to-software conglomerate in direct competition with Jeff Bezos’ Amazon and Mukesh Ambani’s JioMart.