Tata 1mg Eyes $300 Million to Fund Offline Expansion Amid Rising Competition

May 14, 2025

Share this post :

Tata 1mg, the e-pharmacy giant backed by Tata Digital, is entering a new growth phase as it looks to raise $300 million in external funding to expand its offline presence. Since Tata Digital’s acquisition of a 67% stake in 1mg in 2021, the company’s revenue has more than tripled, with FY25 estimates reaching Rs 2,500-2,600 crore.

This strategic fundraising initiative comes amid rising competition in the quick delivery sector, where rivals like PharmEasy and Apollo 24/7 have been ramping up their offline capabilities.

Shifting Strategy: From Online Dominance to Omnichannel Expansion

The proposed $300 million funding round represents a notable shift in Tata 1mg’s business strategy. While the company has largely focused on its online pharmacy and digital diagnostics segments, the latest move underscores its intent to establish a stronger offline presence. Currently, Tata 1mg’s B2C segment, including e-pharmacy, e-diagnostics, and consultation services, accounts for 70% of its revenue.

The company plans to set up physical stores in major cities like Gurugram, Noida, and Jaipur, while also collaborating with BigBasket to penetrate untapped regions.

This offline push is expected to bolster its 30-minute quick delivery service, aiming to compete with existing players like Apollo 24/7 and Zepto.

Financial Performance and Future Outlook

Tata 1mg’s financial performance has shown a steady upward trajectory. In FY24, the company reported a 21% revenue increase to Rs 1,968 crore, with 80% coming from medicine sales. The firm’s net loss also narrowed significantly to Rs 313 crore from Rs 1,255 crore in FY23.

As it moves forward with offline expansion plans, Tata 1mg aims to maintain its growth momentum while navigating regulatory challenges in the e-pharmacy sector.

With new product lines, institutional tie-ups, and comprehensive healthcare offerings, the company is positioning itself as a key player in India’s evolving healthcare landscape.