The reports highlight that the company is planning to raise USD 300 million in external funding
Amid rising competition in the segment, Tata 1mg, an online pharmacy company backed by Tata Digital, is planning to strengthen its offline presence, as per the media reports, which also highlighted that there are talks of an external funding round as the company is entering the investment phase again.
The reports highlighted that the company is planning to raise USD 300 million in external funding. Back in 2021, Tata Digital acquired a stake in the company. Since then, it has raised only USD 40 million. The reports added that the latest development related to planned fundraising indicates a strategic shift for the Tata Group, which earlier asked BigBasket and 1mg to increase dependency on debt to fund growth.
As far as the financial performance is concerned, reports noted that the online pharmacy is likely to have clocked around 30 to 35 per cent growth in its revenue in the recently concluded fiscal year (FY25) to around Rs 2,500 crore. As the company is focusing on offline expansion, its annual cash burn is around Rs 180 crore, the reports added.
The reports added that the company’s revenue has shown healthy growth since being acquired by the Tata Group, which owns a 67 per cent stake in the company. As far as the complete shareholding breakdown is concerned, the founders of the company own about seven per cent, and the investors like World Bank’s investment arm, IFC, and Corisol Holdings hold the rest percentage in remaining 33 per cent stake, as per the reports.
