PE agency Gaja Capital could lead $100 million spherical in 1MG, Expertise Information, ETtech
Amid the consolidation within the e-pharmacy area, 1MG is in talks with Indian and international personal fairness funds for a brand new fund-raise of round $100 million because it prepares to struggle rivals — Reliance Industries, Amazon and PharmEasy-Medlife mix.
Non-public fairness agency Gaja Capital is in a sophisticated stage of talks to steer the spherical at 1MG, whereas Tata Capital and Europe’s Companions Group are additionally trying to take part within the deal together with one other ‘international personal fairness main’, stated three sources briefed on the matter.
The discussions are underneath manner on the ultimate contours of the deal, which can embrace the whole spherical being accomplished in tranches, sources conscious of the matter stated. For Gaja, if the cope with the Gurgaon-based firm closes, it will likely be its first funding from its new fourth fund of round $400 million. 1MG’s present traders, which embrace Sequoia Capital and World Financial institution funding arm IFC, are additionally anticipated to take part.
“It’s trying to increase north of $100 million and the talks have accelerated following the Reliance-Netmeds deal as it could require capital as a standalone participant. Round $70 million of recent capital has been finalised however 1MG is negotiating for a much bigger cheque,” an individual conscious of the matter stated. TOI reported on August 24 how greater stickiness, wider healthcare enterprise has attracted the likes of Reliance and Amazon within the on-line medication supply area. It talked about PharmEasy can be working with JP Morgan for fund-raise whereas it’s in the course of buying smaller rival Medlife.
When contacted, 1MG co-founder and CEO Prashant Tandon, spokesperson for Gaja Capital and Tata Capital declined to touch upon the matter. E mail despatched to Companions Group didn’t elicit any response.
For 1MG’s rivals like Netmeds, now majority owned by Reliance, moreover PharmEasy-Medlife, most of their income comes from medication supply, whereas they broaden to on-line physician consultations and lab checks. Tandon just lately advised TOI that round 50% of its high line is from medication supply because it appears to place itself as a broader digital healthcare platform.
A report by market analysis agency Redseer on Sunday stated e-pharmacy platforms, together with session and lab checks, are anticipated to clock $2 billion in product sales by March 2021 — with provide chain restoration and rise in new customers.
Because the begin of the Covid-19 pandemic in March, 6 million new households tried on-line medication taking the whole to 9 million households, a current Ficci-Redseer white paper stated. The most recent Redseer report stated e-pharmacies clocked $1.three billion in product sales for the 12-month interval ending March 2020.