1mg Joins Unicorn Club, Tata Digital Infuses Around $40 Mn
After Tata's backing, the valuation stands at $1.25 billion. A larger round of funding will be sought by the company later this year or in 202
Photo Credit : http://www.enukesoftware.com/,
Online pharmacy 1mg has joined the unicorn club. It reached the milestone after an internal round of funding led by Tata Digital. Tata’s backing helped the company to cross the $1 billion valuation; now it stands at $1.25 billion. The company has raised $41 million. In June 2021, Tata Digital acquired 1mg at a valuation of around $450 million.
Approximately $40 million has already been invested, with Tata Digital and other parties taking part, according to regulatory documents. In addition to Tata, a few other current investors took part in the round.
Sources said that the new funding came with a significant premium. A larger valuation was required in order to end the negotiations before the markets became turbulent. A larger round of funding will be sought by the company later this year or in 2023.
In the fiscal year 2022, the Gurugram-based company's operational revenue more than doubled to Rs 627 crore from Rs 309 crore. At Rs 526 crore, its losses also climbed by over 70 per cent.
The fresh money comes at a time when PharmEasy, a competitor of 1mg, is also trying to seek a new round of funding after scrapping its intentions for an IPO. Netmeds, which is also owned by Reliance, is a competitor of 1mg besides Apollo.
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