New Delhi, June 10 (IANS) Tata Digital Limited, a 100 per cent subsidiary of Tata Sons Private Limited, will acquire a majority stake in digital health company 1MG Technologies Private Limited (1MG).
The investment in 1MG is in line with the Tata Group's vision of creating a digital ecosystem that addresses consumer needs across categories in a unified manner, a company statement said.
E-pharmacy, e-diagnostics, and teleconsultation are critical segments in the present ecosystem and have been among the fastest-growing segments in this space, as it enables access to healthcare during the pandemic, it said.
The overall market is around $1 billion and is expected to grow at ~50 per cent CAGR, driven by increased health awareness among the consumers and greater convenience. This category will form a key element of the Tata Digital ecosystem offering, the statement said.
Commenting on the investment, Pratik Pal, CEO of Tata Digital, said, "The investment in 1MG strengthens Tata's ability to provide superior customer experience and high-quality healthcare products and services in the e-pharmacy and e-diagnostics space through a technology-led platform."
Prashant Tandon, Co-founder and CEO, 1MG, said, "We are delighted to join hands with one of India's most iconic and respected conglomerates. This marks a significant milestone in 1MG's journey to make high-quality healthcare products and services accessible to the customers across India."
Earlier this week, Tata Digital entered into a Memorandum of Understanding (MoU) for an investment of up to $75 million in CureFit Healthcare Private Limited (CureFit), subject to completion of diligence process and other approvals.
CureFit Founder and CEO Mukesh Bansal will join Tata Digital in an executive role as President, Tata Digital Limited. In addition, Bansal will continue in his leadership role at CureFit.
In May, Tata had acquired a majority stake in Supermarket Grocery Supplies Private Limited (BigBasket) – India's largest e-commerce player in the food and grocery segment.
E-grocery has been one of the fastest-growing segments in the consumer e-commerce space and its growth is propelled by India's rising consumption and digital penetration.
The current pandemic has further accelerated its adoption as consumers seek the convenience of ordering quality groceries delivered safely at home.
BigBasket was founded in 2011 in Bengaluru and has expanded its presence to 25+ cities across India since then.
In the e-grocery space, BigBasket provides one of the largest assortments (50,000+ SKUs) and provides customers the convenience of home deliveries on preferred dates and time slots.
It also operates a farm-to-fork supply chain with over 12,000 farmers and several collection centers across India.