Tata Digital is reportedly looking to raise $300 million in funding for its digital healthcare services platform, Tata 1mg, according to sources familiar with the matter.

Tata 1mg, whose business ranges from online pharmacy to diagnostics, and other healthcare services, plans to invest the money in strengthening its physical presence and quick deliveries.

Currently, Tata 1mg delivers orders within 4-5 hours in select locations, including Delhi NCR. Additionally, the platform offers an express delivery option, promising 30-minute delivery for select products.

This fundraising effort comes at a time when India’s e-pharmacy market is experiencing substantial growth, driven by rising digital adoption and increasing internet penetration. Valued at $394.09 million in 2024, the sector is projected to grow to $801.34 million by 2030 at a CAGR of 12.62%. However, online pharmacies still account for only 3-5% of the total Indian market, far behind the 22-25% share in developed economies, highlighting the sector’s immense growth potential.
To facilitate this fundraise, the company has appointed Citi Bank as its financial advisor.  Tata Digital owns approximately 63% of Tata 1mg, with other investors including Sequoia Capital, Intel Capital, Omidyar Network, and the Bill & Melinda Gates Foundation.

Tata 1mg was last valued at $1.25 billion during its previous funding round in 2022.

Meanwhile, BigBasket, India’s first online grocer, is also in urgent need of funds to sustain its operations and scale its quick commerce business. Despite operating in over 30 cities and processing 15 million monthly orders, BigBasket continues to struggle in the fast-growing quick commerce segment, facing intense competition from Zepto, Swiggy Instamart, and Blinkit.

Sources indicate that BigBasket is looking to raise around $1 billion as it pushes to stabilize and expand its quick commerce operations. Tata Digital, which owns a 64% stake in BigBasket, is exploring various funding options, including debt financing, to support expansion efforts.

CNBC-TV18 reached out to Tata 1mg and BigBasket for comment but had not received a response at the time of publication.

The proposed funding round is expected to support Tata 1mg’s aggressive expansion plans in India’s growing digital healthcare market.