Novo, Permira, CPPIB Interested in Tata 1mg’s $200 Mn Fundraise, But Seek Perks

Tata Sons’ omnichannel pharmacy platform, 1mg, is reportedly in talks to raise up to $200 million in primary capital, attracting several prominent investors. The platform, under Tata Digital, plans to use the funds to fuel its next phase of growth.

According to the Economic Times (ET), investors showing interest include Novo Holding (parent of Danish drugmaker Novo Nordisk), Canadian pension fund CPPIB, Permira, and ChrysCapital. This comes as the unit has demonstrated strong growth in recent years while significantly reducing its losses.

The fundraiser is part of a broader capital raise for Tata Digital, which also includes its omnichannel platform with the Tata Neu app, electronics retailer Croma, grocery app and quick commerce arm BigBasket, and online fashion platform Tata Cliq. The newspaper noted that Tata 1mg is currently seen as one of the best-performing businesses in the Tata Digital portfolio.

Tata Digital holds approximately 63% in Tata 1mg, alongside investors such as Sequoia Capital, Intel Capital, Omidyar Network, and the Bill & Melinda Gates Foundation. Acquired by the Tata group in June 2021, Tata 1mg delivers orders within four to five hours in select locations like Delhi-NCR and offers a 30-minute express delivery service for certain products. In addition to e-pharmacy services, it provides diagnostics and other healthcare offerings, while expanding its offline presence and faster delivery options.

The company was valued at $1.25 billion in its last funding round in 2022. According to Tata Sons’ annual report, Tata 1mg’s consolidated revenue grew 22% in FY25 to ₹2,392 crore, up from ₹1,968 crore in FY24. Revenue came from Tata 1mg Technologies (₹2,016.5 crore) and Tata 1mg Healthcare Solutions (₹375.5 crore). Losses narrowed to ₹276 crore in FY25 from ₹313 crore the previous year, while profit before tax stood at ₹290 crore.

The report notes that funding discussions have hit a roadblock over Tata 1mg’s valuation. Investors are proposing a valuation of $750–800 million, considerably lower than the $1.25 billion market value achieved in 2022.

Some investors are also seeking board seats and special rights, which Tata Sons has resisted. If the stalemate continues, Tata Sons may inject around $75 million on its own in a down round and seek external funds to cover the remaining requirement, executives told the newspaper. Alternatively, the company may opt for a smaller raise. The business is estimated to need $125 million in fresh capital.

A company executive said that integrating 1mg with Tata's super app, Neu, has accelerated growth and scaled up the business. They stressed that investor interest remains strong and that funding will be secured through the most suitable option.