Healthtech startup 1MG has closed its $70 Mn Series D round led by Corisol Holdings, along with the World Bank’s investment vertical IFC.
Other investors including Redwood Global, Korea Omega Healthcare Fund, existing investors such as Sequoia Capital, Maverick Ventures, HBM Healthcare investments, Omidyar Network and Kae Capital also participated in the round.
The company said it would use the funds to expand the reach of its diagnostic labs to 100 cities in India, and make epharmacy services available in Tier 3 cities as well as villages. Further, it said it will invest in building its data science team for new products such as a digital doctor and AI-powered health bots.
Prashant Tandon, CEO of 1MG, said the company is looking for comprehensive coverage of all of India. “We’re setting up the supply chain, logistics and infrastructure to make this happen, and are also shoring up on partnerships,”
The Gurugram-headquartered company had earlier raised INR 314 Cr ($45.4 Mn) in a funding round between December 2018 and March 2019. According to Inc42 Datalabs, the company has raised above $100 Mn in multiple funding rounds.
1MG was launched in April 2015 after Healthkart separated its generic drug search business, HealthkartPlus, and rebranded it as 1MG. The company has three business verticals — Pharmaceuticals, Labs, and Doctors. The company founders include Prashant Tandon, Gaurav Agarwal, and Vikas Chauhan.
1MG claimed that more than 70 Mn unique patients from across India accessed its platform over the last year to get epharmacy, ediagnostics and econsultation services, while its healthcare content saw over 2.5 Billion annual pageviews.
In FY 2018, 1MG Technologies reported revenue of INR 39.8 Cr ($5.4 Mn), a 223% jump from the last financial year. Of the total revenue, the epharmacy contributed INR 23.2 Cr ($3.1 Mn) while the diagnostics share was INR 8.8 Cr ($1.1 Mn) in FY18, an increase of 268% and 214% respectively from FY2017. The company had further reported a net loss of INR 88 Cr ($11.9 Mn) in FY2018, which is about a 50% increase from the last financial year.
The healthcare industry in India is said to be one of the fastest growing sectors backed by India’s rising income, health awareness, and access to insurance, but also due to the increase in lifestyle and stress-related diseases. The IBEF has estimated the Indian healthcare market to be valued at $372Bn by 2022.
According to Inc42’s The State of Startup Ecosystem Report 2018, there are a total of 4,892 startups in the Indian healthtech space. Last year saw an overall increase of 45.06% in the total investments in healthtech startups. Overall, the healthtech startups in India raised a total of $504 Mn between 2014-2018.
Startups competing with 1MG in the epharmacy space include Pharmeasy, Netmeds, and Medlife. With its labs and doctors vertical, the company also competes with a slew of telemedicine startups such as Practo, Lybrate, mfine, and DocsApp.