Image courtesy: Theeconomictimes
Tata Digital Limited has decided to buy stakes in 1MG. However, the actual percentage of stakes is not disclosed. According to soeculations by sources of tech crunch, Tata digital is planning to own 55 percent stakes of 1MG.
Since 2015, 1MG has provided customers with inexpensive pharmaceuticals, health and wellness products, diagnostic services, and a teleconsultation facility. Over 20,000 cities in India are served by the company’s health and wellness services.
This is why Tata Group showed an interest in purchasing stakes in the company, as the firm plans to create its e-commerce platform in which it would supply customers with a range of products from health care to grocery, all of which will be available in one place. E-pharmacy, e-diagnostics, and teleconsultation have been increasingly popular in recent years all over the world, especially in this covid era when no one can go outside to see a doctor. Teleconsultation has played a major role in assisting patients in treating themselves at home.
Image Courtesy: Bloomberg.
As a result, some big companies are attempting to acquire stakes in e-pharmacies so that they can integrate their services into their platforms and benefit from them. Last year, Reliance Industries bought a 60 percent share in online pharmacy store Netmeds for its upcoming Ecommerce Platform, and now the Tata Group will also join the race.
The e-pharmacy sector is worth over $1 billion and is expected to rise soon as consumers become more health-conscious. This category will undoubtedly play an important role in the Tata Digital ecosystem. In a recent interview with a news portal, Prashant Tandon, Co-Founder & CEO of 1MG, said: “We are glad to join one of India’s most famous & renowned companies.” This marks a crucial turning point in 1MG’s progress.
Tata has purchased major stakes in some large e-commerce platforms in recent months, which includes the renowned online grocery store BigBasket, and it is expected that Tata Digital would soon buy holdings in Bengaluru-based fitness startup Curefit.