Funding will help healthcare start-up 1mg fend off competition from rivals such as Sequoia Capital backed Practo Technologies
New Delhi: Online healthcare start-up 1mg Technologies Pvt. Ltd on Monday said it has raised undisclosed additional funding in its Series B round from global healthcare-focused fund HBM Healthcare Investments AG.
In April, the company raised ₹ 100 crore in the Series B round from Maverick Capital Ventures, the venture capital (VC) arm of US-based hedge fund Maverick Capital Ltd, besides existing investors Sequoia Capital and Omidyar Network.
HBM focuses on development stage growth and buyout financings of private companies as well as investments in public companies. It has over $1 billion under management.
“As a focused investor in healthcare, we have been monitoring the interesting impact that technology is having in the space of healthcare delivery.We believe 1mg has created a unique platform in one of the fastest growing markets in the world, and this platform can be the foundation of India’s leading healthcare services business in the years ahead," said Dr. Andreas Wicki, chief executive officer at HBM Healthcare Investments.
The funding will help 1mg fend off competition from rivals such as Sequoia Capital-backed Practo Technologies Pvt. Ltd, which has so far raised $124 million from investors such as Tencent Holdings Ltd, Sofina SA, Google Capital and Altimeter.
Among other competitors are Netmeds and Zigy. While global healthcare fund OrbiMed has invested in Netmeds.com, Zigy counts IT industry veteran Phaneesh Murthy as its investor.
“At this key stage of our growth, we are in good shape with a high quality team in place and our business is backed by the best investors in the business across technology, healthcare and digital health. With over 75 million annual visits on our platform already, we’ve a very good shot at changing healthcare for consumers at scale in India," said 1mg founder and chief executive Prashant Tandon.
1mg had raised $6 million from Sequoia Capital, Intel Capital, Omidyar Network and Deep Kalra, co-founder of travel portal MakeMyTrip, in April last year. It is using the funds to expand online pharmacy and diagnostics vertical, and launch digital health services such as smart prescriptions and personalised health feeds for consumers. It also plans to expand its reach from the current 12 cities to 30 by March 2017, said Tandon.
1mg was earlier called HealthkartPlus, the generic drug search business of Healthkart, an online vendor of health products run by Bright Lifecare Pvt. Ltd. In April 2015, HealthkartPlus was spun off into a separate entity and rebranded 1mg.
While Tandon, who was one of the founders of Healthkart, took charge at 1mg, co-founder Sameer Maheshwari continues to head Healthkart.
1mg operates an online marketplace for medicines, besides facilitating medical appointments and diagnostic test bookings.
1mg has a database of about 100,000 medicines with detailed information on their side-effects and composition. It also allows consumers to do a price comparison among multiple brands of medicines with the same composition.
Earlier this month, the firm appointed former Zomato executive Tanmay Saksena as its chief operating officer.