Tata 1mg, the digital pharmacy backed by Tata Digital, is preparing for a fresh $300 million funding round as it pivots from a low-investment period into an aggressive growth phase—this time with a focus on expanding its presence beyond screens and into the streets.
After a relatively quiet couple of years on the fundraising front—raising only $40 million via a rights issue from Tata Digital in 2022—the company is now looking to rope in external investors to fuel its next chapter. Sources familiar with the developments say the shift signals a broader change in strategy within the Tata Group, which had earlier nudged its consumer-facing bets like 1mg and BigBasket to lean more on debt rather than equity for growth.
This new infusion, if it materializes, would mark one of the largest capital raises in India’s healthtech sector in recent years.
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The funding push comes on the back of solid top-line momentum. In FY25, 1mg is believed to have clocked revenue in the ballpark of ₹2,500–2,600 crore—a healthy 30–35% jump from the previous year. But that growth hasn’t come cheap. The company is burning roughly ₹180–200 crore annually, insiders say, with a sizable chunk going into building out its offline footprint.
While 1mg started as a digital-first platform offering diagnostics, medicines, and consultations, it’s now rolling out physical stores and health hubs to capture a wider slice of India’s fragmented pharmacy market. The logic: not all healthcare transactions happen online, and for a country where trust often builds face-to-face, brick-and-mortar still matters.
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If the fundraising round closes as expected, it could arm 1mg with enough capital to aggressively scale its offline operations, strengthen supply chains, and possibly fend off intensifying competition from the likes of PharmEasy and Apollo HealthCo.
The Tatas appear ready to double down on healthcare, and this time, they’re stepping out of the app and into the neighborhood.
