Gurugram-based online pharmacy startup 1mg has raised ₹490 crores in Series D funding round from Corisol Holdings and World Bank’s investment arm IFC. Redwood Global and Korea Omega Healthcare Fund also joined the funding round as new investors. Existing investors Sequoia Capital, HBM Healthcare Investments, Omidyar Network, Kae Capital and Maverick Ventures also participated in the funding round.
Using the fresh capital, 1mg will accelerate the expansion of its labs to 100 cities and grow its online pharmacy userbase by targetting tier II, III and IV cities. The startup is also working towards developing a data science team and scaling up doctors and AI-powered health bots to better serve its customers.
Founded by Prashant Tandon, Sameer Maheshwari, Vikas Chauhan and Gaurav Agarwal in 2012, the startup sells medicines directly to consumers as well as targets corporates, OPD in insurance and patient support programs in partnerships with pharmaceutical companies. The startup has served more than 7 crore customers through its pharmacy, diagnostics and consultation offerings.
Prashant Tandon, CEO of 1MG, said, “We are looking for comprehensive coverage of all of India. We’re setting up the supply chain, logistics, and infrastructure to make this happen, and are also shoring up on partnerships,”
The latest funding has valued the startup at ₹1,400 crores. Earlier in December 2018, the startup raised ₹314 crores. 1mg has raised a total of ₹1,143.8 crores in 11 funding rounds since its inception. It has acquired several startups in the healthcare sector including Dawailelo in September 2017, MediAngels in December 2016 and Medd in July 2016.
1mg has launched private label last year and wants to generate around 10% of its revenue from its own line of products in the next 12 months. The private label unit has a portfolio of seven products. In the financial year 2017-18, the startup recorded an 8 folds increase in its revenue to ₹85.8 crores. The losses also peaked to ₹192 crores from ₹58 crores in the previous financial year.
1mg competes with startups like Pharmeasy, Medlife, and NetMeds in online pharmacy and Lybrate, mFine, DocsApp and Practo in the e-consultation sectors respectively. The IBEF has estimated the Indian healthcare market to be valued at ₹26 lakh crores by 2022. Overall, the healthtech startups in India raised a total of ₹3,528 crores between 2014-2018.