Transaction:
- Tata Digital Limited invested nearly 30 Million USD in Tata 1mg. The transaction also facilitated 1mg to become India’s 107th Unicorn with a valuation of 1.25 Billion USD.
- 1 mg was acquired by Tata Digital Limited in June 2021.
About 1mg:
- 1mg is India’s second largest healthtech startup providing online services such as medicine deliveries, and diagnostics services.
- It delivers medicines across 1800+ cities in India.
- Incorporated in 2015, Tata 1mg reported increase in total consolidated revenue of INR 644.8 Cr in FY22 from INR 316 Cr in FY21 with narrowing losses.
About Tata Digital Limited:
- Incorporated in 2019, Tata Digital Limited is a wholly owned subsidiary of Tata Sons Private Limited. The company is focused to build consumer-centric digital business.
- Tata Digital has an estimated valuation of more than 18 billion USD.
- Tata Digital has been on acquisitions spree in e-commerce companies like BigBasket, Curefit, and 1mg.
Rationale:
- During acquisition in June, 2021, 1mg was valued at 450 Million USD. Tata Digital has now acquired nearly 62% stake in the e-pharmacy.
- Besides the pharmacy business, Tata 1mg will be focusing to widen its diagnostic business to position itself as a digital health platform offering a range of services including online doctor consultations.
- It will also focus on a couple of offline stores opened during 2021, in Delhi-NCR. As on date, the stores are functioning in pilot mode.
Indian Healthtech market
- India currently holds the fourth position in attracting VC funding to the health-tech sector, with investments of US$ 4.4 billion between 2016- 21, while US$ 1.9 billion invested in 2021 alone.
- PharmEasy, largest online pharmacy player, acquired Medlife in May 2021 and acquired a majority stake in listed diagnostics company Thyrocare in June 2021. PharmEasy has also filled IPO papers but have kept the plans on hold due to weak performance and weak markets.
- Majority stake of Net Meds is owned by Reliance Retail.
- In Nov. 2021, Flipkart Group entered into the online pharmacy sector through the launch of Flipkart Health+ by acquiring a majority share in SastaSundar.com, an online pharmacy and digital healthcare platform.
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
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