Tata Group Boosts E-Commerce Footprint With 1MG Acquisition
Tata Digital Ltd., a subsidiary of Tata Sons Ltd., has acquired a majority stake in digital health platform 1MG Technologies as part of its push to build an e-commerce venture in the country.
“The investment in 1MG is in line with Tata Group’s vision of creating a digital ecosystem which addresses the consumer needs across categories in a unified manner,” the company said in a statement. E-pharmacy, e-diagnostics and tele-consultation, it said, are critical in digital ecosystem and have been among the fastest-growing segments as this enabled access to healthcare through the Covid-19 pandemic.
Tata Digital, however, didn’t disclose the investment amount.
1MG has three state-of-the-art diagnostics labs, a supply chain covering more than 20,000 pin codes across the country. And through its subsidiaries, it’s also engaged in the business-to-business distribution of medicines and other healthcare products.
The size of the overall healthcare marketplace, according to Tata Digital, is around $1 billion and is expected to grow at an annualised rate of about 50%, driven by increased health awareness among consumers and greater convenience.
A couple of days ago, Tata Digital invested $75 million in fitness startup CureFit. It has also received the Competition Commission of India’s approval to acquire a majority stake in the nation’s largest online grocery platform, Big Basket.
Tata’s rival Reliance Industries Ltd., too, has made a similar but more aggressive approach to build its e-commerce business through a series of acquisitions, including, Saavn, Embibe, Grab and Fynd, among others. Reliance also forayed into the online pharmacy segment by acquiring Netmeds.