Tata 1mg, the online pharmacy platform under Tata Digital, is pursuing $200m in primary capital and has drawn interest from several investors.
These investors include Novo Holdings – the controlling shareholder of Danish diabetes drugmaker Novo Nordisk – the Canadian pension fund CPPIB, Permira and Chrys Capital, as reported in The Economic Times.
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The funding round is part of a broader capital-raising initiative across Tata Digital units, such as the grocery delivery platform BigBasket.
But prospective investors are pushing back against the $1.25bn post-money valuation established in 2022, proposing instead a range of between $750 and $800m.
Certain parties have also requested board seats and additional affirmative rights, but Tata has declined.
Should these valuation and governance disputes persist, Tata Sons could opt to inject $75m internally while sourcing the balance externally.
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By GlobalDataAs an alternative, a reduced funding amount remains under consideration.
Tata 1mg, formerly known as 1mg, originated as a spin-off from the healthtech platform Healthkart in 2015.
Prior to the separation, the pharmacy segment operated under the name HealthkartPlus. The segment was rebranded as 1mg after the separation under 1mg Technologies.
In 2021, Tata Digital acquired a majority stake in the business, which was subsequently renamed Tata 1mg. Tata Digital eventually increased its shareholding in the business to 63%.
Tata 1mg’s consolidated revenue increased 22% to Rs23.92bn ($269.7m) in FY25, up from Rs19.68bn in FY24. Consolidated losses narrowed to Rs2.76bn in FY25 from Rs3.13bn a year earlier.
