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1MG to Receive 100 Million USD Funds from Gaja Capital says Reports

Gaurav Agarwal, CTO & Co-founder of 1MG

1MG, online pharmacy (1) in India’s upcoming funding round, may also observe participation from Tata Capital, Partners Group of Europe, and other private equity majors from the globe. As per the sources, the final contours of the deals are underworking. If the agreement is finalized, it will make Gaja’s first investment with its 400 million USD fourth fund.

The Gurugram based startup started in 2015 with Bright Lifecare Private Limited demerging. It is a division of the Healthkart Plus, a digital health platform. The startup claims that it has served over 70 million customers via its pharmacy, consultation, and diagnostics verticals as of February.

1MG to Get Much Needed Firepower if The Deal is Completed

If the e-pharmacy gets the 100 million USD fundings, it will give the startup a much-needed boost to stay in the competition. Notably, India is witnessing lots of deals in the e-pharmacy business.

In the previous month, Reliance Industries acquired most stakes in Netmeds, an online pharma company, for approximately 620 crore INR. Pharmeasy, online medicine and healthcare retailer, has also proposed to merge with its opposing Medlife. If the agreement is made, Pharmeasy will acquire 100% of Medlife’s stakes. The latter is likely to get 19.59% of Pharmeasy stakes.

Amazon has also launched Amazon Pharmacy in Bengaluru. Meanwhile, its rival, e-commerce player Flipkart, is looking to enter the space.

To date, 1 MG has raised over 173 million USD fundings. The startup raised its last funding of around 10 million USD from the Bill and Melinda Gates Foundation. It received the grant in February 2020 to meet its present and future operational requirements.

1MG had also secured 70 million USD in its Series D round o funding. It was led by Corisol Holdings European Family office and a part of the world Bank Group, International Finance Corporation (IFC), in June. Redwood Global of South Korea, Korea Omega Healthcare fund also participated in the last round. Its existing investors, Sequoia Capital, Omidyar Network, Maverick Ventures, HBM Healthcare, and Kae Capital, also participated.