The Tata Group’ digital services subsidiary has infused Rs 100 crore debt funds in online pharmacy and health-tech company 1mg. As per Business Standard, Tata Digital has allotted 29,054 CCDs at a price of Rs 34,417.87 per debenture to raise the sum. The company has received Rs 25 crore, and the remaining Rs 75 crore will be infused at a later stage. The CCDs are converted as per the terms of agreement between the company into equity shares, Tata Digital will control 5.66% stake on a fully diluted basis, per Entrackr.
Tata Digital is in the final stages of acquiring a controlling stake in Gurgaon-based company. It’s expected to pick up a 50% stake in 1mg; the two companies have been in talks since November.
The deal is expected to bolster the Tata Group into the fast-growing e-commerce segment. In March, Tata Sons Pvt. Ltd. also kicked off the process to buy a majority stake in online grocery seller BigBasket. Tata Digital Ltd. approached the Competition Commission of India, proposing to buy 64.3% of an entity that runs business-to-business sales of BigBasket. The Economic Times had previously reported that the Tata Group aims to take control of over 60% of BigBasket, buying out Alibaba’s stake.
1mg started off as as online pharmacy and has since expanded into insurance, patient support program, laboratory testing, doctor discovery, and so on. Founded eight years ago, it has raised over $200 million across several rounds from Corisol Holding, IFC, Redwood Global and Korea Omega Healthcare Fund, Sequoia, Maverick Ventures, Omidyar and Kae Capital among others.
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