Tata Digital, the subsidiary of Tata Sons, said on Thursday it is acquiring a majority stake in digital health startup 1mg, the latest in a series of investments as the salt-to-steel Indian conglomerate enters the digital consumer space.
The firms didn’t share the financial details of the deal, but earlier local media reports suggest that Tata Digital is investing between $100 million to $110 million in the six-year-old Indian startup for 65% stake. A spokesperson for Tata Digital declined to comment.
According to insight firm Tracxn, 1mg had raised $156 million prior to Thursday’s announcement and was last valued at $242 million. This would suggest that Tata Digital is buying 1mg, which counts Bill & Melinda Gates Foundation and Sequoia Capital India among its investors, at a discount.
1mg is one of the largest players in the health space in India. The startup operates diagnostics labs, has a supply chain that covers over 20,000 Indian zipcodes, and is a major business-to-business distributor of medicines in the South Asian nation.
Tata Digital said its investment in 1mg is in line with the giant’s “vision of creating a digital ecosystem which addresses the consumer needs across categories in a unified manner.” The giant, which announced plans to invest in fitness startup CureFit earlier this week, acquired a majority stake in online grocer BigBasket earlier this year.
This is a developing story. More to follow…